Impact of Foreign Institutional Investor on Indian Stock Market During Financial Crisis

Indian capital market is the major index of Indian economy and the main focusing part is primary market and secondary market through which economy is operating. This was tremendously affected by foreign investment inflow into the Indian capital market. Hence FII becomes the matter of discussion after the major economic reforms since 1991. The main objective of this research paper was to study the impact of FII on Indian stock market by taking sensex as a benchmark index. The paper covers the statistical analysis of FII (Foreign Institutional investor) flows and its impact on the index during Global financial crisis of 2008 and Euro zone crisis of 2011. The empirical analysis has been done using statistical tools like t-test, correlation, regression analysis to identify the relation between FII and Indian stock market and The impact of the FII flows during the two crises has been analyzed.