Published Paper Details:

The liberalization of financial markets during the 1990s facilitated the inflow of Foreign Institutional Investments (FIIs) into emerging economies, including India. This study examines the influence of institutional investors--specifically FIIs and Domestic Institutional Investors (DIIs)--on the Indian stock market. With India emerging as one of the most attractive destinations for portfolio investments, understanding the investment behaviour of FIIs and DIIs becomes critical for analyzing market movements and volatility. The study is analytical in nature and based on secondary data collected over 55 months, from January 1, 2020, to July 31, 2024. It investigates whether the investments or withdrawals by FIIs and DIIs significantly impact the BSE Sensex, both on the same and succeeding days. Using statistical tools such as correlation and Ordinary Least Squares (OLS) regression analysis (via E Views software), the study evaluates the causal relationship and market responsiveness to institutional investor activities. The findings aim to enhance understanding of market dynamics and provide insights for investors, researchers, and policymakers.