IDEAS home Printed from
   My bibliography  Save this article

Foreign Institutional Investor'S Impact On Stock Prices In India


  • Anand Bansal
  • J.S. Pasricha


This paper studies the impact of market opening to FIIs, on Indian stock market behavior. India announced it's policy regarding the opening of stock market to FIIs for investement in equity and related instruments on 14-th September 1992. Using stock market data related to Bombay Stock Exchange, for both before and after the FIIs policy announcement day. An empirical examination has been conducted to assess the impact of the market opening on the returns and volatility of stock return. We found that while there is no significant changes in the Indian stock market average returns, volatility is significantly reduced after India unlocked it's stock market to foreign investors.

Suggested Citation

  • Anand Bansal & J.S. Pasricha, 2009. "Foreign Institutional Investor'S Impact On Stock Prices In India," Journal of Academic Research in Economics, Spiru Haret University, Faculty of Accounting and Financial Management Constanta, vol. 1(2 (Octobe), pages 174-182.
  • Handle: RePEc:shc:jaresh:v:1:y:2009:i:2:p:174-182

    Download full text from publisher

    File URL:
    Download Restriction: no


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. K L Chawla & Pankaj Kumar Gupta, 2014. "Financial Perspectives of Globalization in Emerging Economies ? Concerns for India," Proceedings of Economics and Finance Conferences 0401601, International Institute of Social and Economic Sciences.

    More about this item


    Foreign institutional investors; Stock prices return; Stock prices Volatility; Foreign Investments.;

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:shc:jaresh:v:1:y:2009:i:2:p:174-182. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Claudiu Chiru). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.