Published Paper Details:

The investment through Foreign Institutional Investors (FIIs) has become a powerful force within the development of Indian stock market and it is increasingly viewed as an important reason for stock market unpredictability. This situation has powered researchers to analyze the nexus between FIIs capital moves and stock exchange volatility. To be able to ascertain the hyperlink between the two, present researches make a moderate attempt to create an understanding from the FIIs investment decision and its effect on stock market movements. To check the actual non-stationarity of times series the particular Augmented Dickey-Fuller (ADF) device root examination is used. In present study, statistical tools such as mean, difference, standard deviation, skewness as well as correlation evaluation are used to analyze the impact associated with FIIs influence on Indian currency markets volatility. Along with these tools, GARCH model will be also utilized to study the effect of FIIs capital flows on stock market volatility. The research reveals there is significant relationship between FIIs capital flow and stock market volatility. Furthermore, FIIs purchase has statistically significant impact on a volatility of NIFTY and SENSEX, used as proxy to be able to Indian industry.