Impact of FIIs on Market Capitalization of Indian Stock Market

FIIs make more potent and hold the financial markets exchanges and make to be had a superior price for the scripts however on the same time, pretty doing away with of FIIs can produce a terrible result in the price of the proportion and within the Indian currency. The present study main objective is to examine the impact of FIIs on market capitalization at NSE and BSE are observed. The secondary data are collected from different external sources like SEBI bulletins, RBI official statement, NSE, BSE, The data of market capitalization and FIIs is composed of the NSE and SEBI statements. The data for the current study are taken off 24 years ranging from April 1993 to March 2018. Correlation and regression have been used to present the exact state of the linear relationship between the two variables. Linear regression analysis has been employed to find out the impact of FIIs on market capitalization at NSE and BSE. The findings of the present study reported that there is a significant impact of Foreign Institutional investments on capitalization at BSE and NSE.