Advantages of fiis in indian markets

Get Full Essay Get access to this section to get all help you need with your essay and educational issues. The dawn of 21st century has shown the real dynamism of stock market and the various benchmarking of sensitivity index Sensex in terms of its highest peaks and sudden falls. In this context present paper examines the contribution of foreign institutional investment in sensitivity index Sensex.

Advantages of fiis in indian markets

FIIs have become net sellers in the Indian equity market from April. What factors are affecting this investment decision? The rally in the market from January till March was a rally of hope before the Union Budget.

Markets were oversold but were expecting the finance minister to bring a few sweeping changes. However, the budget did not bring the excitement that was expected.

The rupee continued to depreciate against the dollar. There was a clear inaction on the part of government on the policy front. India was the most expensive among emerging markets. All these affected investment decisions.

How dependant is the Indian equity market on FII investment and is this an impediment for market growth? Foreign investor fund flows are very important for Indian markets to growparticularly when there is no growth or hardly any growth in the equity assets under management of the mutual fund industry and premium collection is not growing in the insurance sector for a sustained period of time.

What will bring foreign institutional investors back? On the earnings front, we saw rural income taking a hit, visible in tractor sales volume. Also, discretionary demand was hit, evident from volume numbers of decorative paints, four-wheelers and consumer durables.

Higher NPAs and provisioning made banking results unexciting and in the absence of investments, order flow for the capital goods industry slowed.

Offer For Sale (OFS) – Process Explained

There remained an environment of policy paralysis and corruption issues kept cropping up. Investors need to see a reversal on both fronts to come back to invest in India. How much does the movement of the rupee impact the FIIs buying decision?

Advantages of fiis in indian markets

Rupee movement is a major consideration. It is similar for other Asian or emerging markets. Also, when an investor loses money only because of currency, it becomes a natural dampener to incremental investment flows into that market.A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and REITs engage in financing real estate.

REITs can be publicly traded on major exchanges, public but non . Sandeep Singal, Co-head, Institutional Equities at Emkay Global Financial Services, talks about what impacts FII investments and its importance for the Indian market. Q. FIIs have become net. Free Essay: FIIs are contributing to the foreign exchange inflow as the funds from multilateral finance institutions and FDI are insufficient, says Abhijit.

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Determinants of FII in India Essay Sample Foreign institutional investors have gained a significant role in Indian stock markets. The dawn of 21st century has shown the real dynamism of stock market and the various benchmarking of sensitivity index (Sensex) in terms of its highest peaks and sudden falls.

Advantages of fiis in indian markets

What is a 'Foreign Institutional Investor - FII' All FIIs take a position in a foreign financial market on behalf of the home country in which For investing exposure to .

tutional Investors (FIIs) and Overseas Corporate Bodies (OCBs) in Indian financial markets after due registration with Securities and Exchanges Board of India (SEBI) and are required to comply with the provisions of Foreign Exchange Management Act.

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