Published Paper Details:

The growth of any economy is often reliant on capital, and in the case of a developing country like India, domestic capital alone is insufficient to meet the demands of the economy. Hence, foreign investment plays a significant role. Foreign investment can be categorized into two forms: Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII). FDI is generally considered a more stable form of foreign capital compared to FII. However, the inflows and outflows of FIIs have a direct impact on the stock market. Consequently, FIIs have gained prominence in India's stock market. This research aims to analyze the trend and pattern of FII flows in India, as well as the link between FIIs and the Sensex, which is the most widely recognized and systematic stock market index used by market participants for benchmarking purposes. The study focuses on examining the influence of FIIs on the Indian stock market using data from the past 17 years. By studying the FII-Sensex relationship, the research aims to shed light on the impact of FII activities on stock market performance in India.