FIIs and Indian Stock Market: A Causality Investigation

• Authors: Minakshi Paliwal , S. D. Vashishtha

Title variants

PL

Zagraniczni Inwestorzy Instytucjonalni i Rynek Akcji w Indiach: Badania Związku Przyczynowego

• Languages of publication: EN

Abstracts

EN

While the volatility associated with portfolio capital flows is well known, there is also a concern that foreign institutional investors might introduce distortions in the host country markets due to the pressure on them to secure capital gains. In this context, present chapter attempts to find out the direction of causality between foreign institutional investors (FIIs) and performance of Indian stock market. To facilitate a better understanding of the causal linkage between FII flows and contemporaneous stock market returns (BSE National Index), a period of nineteen consecutive financial years ranging from January 1992 to December 2010 is selected. Granger Causality Test has been applied to test the direction of causality.

PL

Aczkolwiek brak stabilności związany z przepływami kapitału portfelowego jest dobrze znany, to istnieje również obawa, że zagraniczni inwestorzy instytucjonalni mogą wprowadzać zakłócenia na rynkach krajów przyjmujących z uwagi na wywieraną na nich presję, aby zapewniać zyski kapitałowe. W tym kontekście niniejszy rozdział próbuje poznać kierunek przyczynowości pomiędzy zagranicznymi inwestorami instytucjonalnymi (FIIs) i działaniem indyjskiej giełdy. Aby ułatwić lepsze zrozumienie związku przyczynowego między przepływami FII i mającymi miejsce w tym samym czasie wynikami giełdy papierów wartościowych (BSE National Index), wybrany został okres dziewiętnastu kolejnych lat począwszy od stycznia 1992 do grudnia 2010. Do zbadania kierunku przyczynowości zastosowano test przyczynowości Grangera.

• Publisher: Uniwersytet Łódzki. Wydawnictwo Uniwersytetu Łódzkiego
• Journal: Comparative Economic Research. Central and Eastern Europe
• Year: 2011
• Volume: 14
• Issue: 4
• Pages: 5-24

Dates

published

2011-01-01

online

2012-05-11

Contributors

author

Minakshi Paliwal

• Department of Commerce, Bharati College, University of Delhi, New Delhi, India

author

S. D. Vashishtha

• Department of Commerce, M.D. University, Rohtak (Haryana), India

References

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Identifiers

DOI

10.2478/v10103-011-0024-0