Mohan Babu Final Project

7/31/2019 Mohan Babu Final Project

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Impact Of FII’s On Indian Capital Market [Type text]

Sri Venkatesware College Of Engineering And Technology, Chittoor Page 1

1. INTRODUCTION

INDIAN STOCK MARKET:

Capital markets in India have been a reflection of the country's economic growth and

development over the last two decades. Bombay Stock Exchange's sensitivity index, the

Sensex, has become the barometer of the Indian market. Several reports have been

published by leading international agencies on the potential scope of the Indian capital

markets. India's growth story has important implications for the capital market, which has

grown sharply with respect to several parameters — amounts raised number of stock

exchanges and other intermediaries, listed stocks, market capitalization, trading volumes

and turnover, market instruments, investor population, issuer and intermediary profiles.

The capital market consists primarily of the debt and equity markets. Historically, it

contributed significantly to mobilizing funds to meet public and private companies' financingrequirements. The introduction of exchange-traded derivative instruments such as options

and futures has enabled investors to better hedge their positions and reduce risks.

SIGNIFICANCE OF CAPITAL MARKET

The capital market and the need for the economy to grow at the projected over 8 per cent

per annum, the managers of the Indian economy have been assiduously promoting the

capital market as an engine of growth to provide an alternative yet efficient means of

resource mobilization and allocation. The capital market acts as a brake on channeling

savings to low- yielding enterprises and impels enterprises to focus on performance. It

continuously monitors performance through movements of share prices in the market and

the threats of takeover. This improves efficiency of resource utilization and thereby

significantly increases returns on investment. As a result, savers and investors are not

constrained by their individual abilities, but facilitated by the economy's capability to invest

and save, which inevitably enhances savings and investment in the economy. Thus, the

capital market converts a given stock of investible resources into a larger flow of goods and

services and augments economic growth.

The capital market in India witnessed several policy initiatives since the year2000, which further refined the market micro-structure, modernized operations and

broadened investment choices for the investors. These developments in the securities

market, which support corporate initiatives, finance the exploitation of new ideas and

facilitate management of financial risks, hold out necessary momentum for growth,

development and strength of the emerging market economy of India.





The securities market has two interdependent and inseparable segments, the

new issues (primary market) and the stock (secondary) market. The primary market

provides the channel for sale of new securities while the secondary market deals in

securities previously issued.

The primary market provides the channel for creation of new securities through

issuance of financial instruments by public companies as well as Governments and

Government agencies and bodies whereas the secondary market helps the holders of

these financial instruments to sale for exiting from the investment. The price signals,

which subsume all information about the issuer and his business including associated

risk, generated in the secondary market, help the primary market in allocation of funds.

The primary market issuance is done either through public issues or private placement.

A public issue does not limit any entity in investing while in private placement, the

issuance is done to select people.

Investors trade their holdings in response to changes in their assessment of risk

and return in this market. They also sell securities for cash to meet their liquidity needs.

The exchanges do not provide facility for spot trades in a strict sense. Closest to spot

market is the cash market in exchanges where settlement takes place after some time.Trades taking place over a trading cycle (one day under rolling settlement) are settled together

after a certain time. Reforms in the securities market, particularly the establishment and

empowerment of SEBI, market determined allocation of resources, screen based nation-wide

trading, de-materialization and electronic transfer of securities, rolling settlement and ban on

deferral products, sophisticated risk management and derivatives trading, have greatly improved

the regulatory framework and efficiency of trading and settlement. Indian market is now

comparable to many developed markets in terms of a number of qualitative parameters.

Foreign investor can invest in India through the following ways, they are

Foreign direct investment(FDI)

Foreign institutional investment(FII)





FDI: FDIs means an investment made by overseas investor to acquire lasting investing

in a company or firm is called FDI. FDI is long term oriented in nature

FII: FIIs means an investment made by overseas investor in securities market. They

don‘t have management power in the company they invest. FIIs are short term oriented

in nature

FOREIGN INSTITUTIONAL INVESTORS

Foreign institutional investor means an entity established or incorporated outside India which

proposes to make investment in India. Positive trends about the Indian economy combined with a

fast-growing market have made India an attractive destination for foreign institutional investors.

FII is defined as an institution organized outside of India for the purpose of making investments

into the Indian securities market under the regulations prescribed by SEBI.

Who are FIIs

The following are said to be FIIs they are

Overseas pension funds,

mutual funds,

investment trust,

asset management company,

nominee company,

bank,

institutional portfolio manager,

university funds, endowments,





foundations,

charitable trusts,

charitable societies,

a trustee or power of attorney holder incorporated or established outside

Where do they invest?

The following financial instruments are available for FII investments

Securities in primary and secondary markets including shares, debentures and warrants of

companies, unlisted, listed or to be listed on a recognized stock exchange in India;

Units of mutual funds;

Dated Government Securities;

Derivatives traded on a recognized stock exchange;

Commercial papers.

Eligibility criteria for applicant seeking FII registration

As per Regulation 6 of SEBI (FII) Regulations,1995, Foreign Institutional Investors

are required to fulfill the following conditions to qualify for grant of registration:

Applicant should have track record, professional competence, financial

soundness, experience, general reputation of fairness and integrity.

The applicant should be regulated by an appropriate foreign regulatory authority in

the same capacity/category where registration is sought from SEBI. Registration

with authorities, which are responsible for incorporation, is not adequate to qualify

as Foreign Institutional Investor.





The applicant is required to have the permission under the provisions of the

Foreign Exchange Management Act, 1999 from the Reserve Bank of India.

Applicant must be legally permitted to invest in securities outside the country or its

in-corporation / establishment.

The applicant must be a "fit and proper" person.

The applicant has to appoint a local custodian and enter into an agreement with

the custodian. Besides it also has to appoint a designated bank to route its

transactions.

Payment of registration fee of US $ 10,000.00

"Form A" as prescribed in SEBI (FII) Regulations, 1995 is to be filled before

applying for FII registration.

Important terms to know about FIIs:

Sub-account :

Sub-account includes those foreign corporations, foreign individuals, and

institutions, funds or portfolios established or incorporated outside India on

whose behalf investments are proposed to be made in India by a FII.

Designated Bank:

Designated Bank means any bank in India which has been authorized by the

Reserve Bank of India to act as a banker to FII.

Domestic Custodian:

Domestic Custodian means any entity registered with SEBI to carry on the

activity of providing custodial services in respect of securities.





Broad Based Fund:

Broad Based Fund means a fund established or incorporated outside India,

which has at least twenty investors with no single individual investor holding

more than 10% shares or units of the fund. Provided that if the fund has

institutional investor(s) it shall not be necessary for the fund to have twenty

investors.

Investment Restrictions

Certain limitations apply to investments by FIIs into India.

First, FIIs‘ and their subaccounts‘ investment in an Indian company can not exceed ten

percent (10%) of the total issued share capital of the Indian company (five percent if the

subaccount is a foreign corporation or individual).

In addition, the aggregate investment of all FIIs in an Indian company may not exceed

twenty four percent (24%) of its total issued share capital, without the express approval

of its board of directors and shareholders. Even with board of director and shareholder

approval, the same sectoral limits which apply to foreign direct investment would

continue to apply.

FIIs may register with SEBI as a debt fund or an equity fund. FIIs which are

registered as equity funds, are required to invest at least seventy percent (70%)

of their funds in equity and equity-related securities.

A FII registered as a debt fund, on the other hand, must invest one hundred

percent (100%) of its funds in debt instruments. Foreign corporations and

individuals are not eligible subaccounts of a FII that is registered as a debt fund.

FIIs are not permitted to engage in short selling, other than in respect of derivative

securities traded over a recognized exchange, and must effect transactions through a





registered stock broker. Sector investment prohibitions and caps which apply to foreign

direct investment also apply to investments by FIIs, and FII investments must also

comply with the pricing requirements applicable to foreign direct investment. In addition,

FIIs are not permitted to invest in print media.

TAXATION POLICIY ON FIIs

The taxation norms available to FII are shown in the table below.

Nature of Income Tax Rate

Long-term capital gains 10%

Short-term capital gains 30%

Dividend Income Nil

Interest Income 20%

Long term capital gain: Capital gain on sale of securities held for a period of more than

one year.

Short term capital gain: Capital gain on sale of securities held for a period of less than

one year.

FIIs and their impact on Indian Stock market

It is influence of the FIIs which changed the face of the Indian stock markets.

Screen based trading and depository are realities today largely because of FIIs.

Equity research was something unheard of in the Indian market a decade ago. Itwas FII which based the pressure on the rupee from the balance of paymentsposition and lowered the cost of capital to Indian business.

http://www.citeman.com/4005-fiis-and-their-impact-on-indian-stock-market/

http://www.citeman.com/4005-fiis-and-their-impact-on-indian-stock-market/





It is due to the FIIs that a concept like corporate governance is being increasinglyadopted by Indian companies; this is benefiting domestic investors also.

FIIs are the trendsetters in any market. They were the first ones to identify thepotential of Indian technology stocks. When the rest of the investors invested in

these scripts, they exited the scripts and booked profits.

Before the arrival of FIIs, the activity in stocks used to be evenly attributed with little

differences between volumes in specified and cash groups. However since FIIs

concentrate on the top 200 companies against the 6,000 listed companies on BSE, the

stock trading activity has concentrated to these liquid scripts making them less liquid

scrip‘s totally illiquid. Thus, FIIs have become the driving force behind the movements of

the stock indices on the Indian stock markets.

Table showing the investment in Indian capital market by FIIs

(from 2011-2012)

FII Net Investments- 2000-2012 (INR Crores)

Year Equity Debt Total

2012 42,841.80 4,563.40 87,987.60

2011 -2,714.20 42,067.00 39,352.80

2010 133,266.30 46,408.30 179,674.60

2009 83,424.20 4,563.40 87,987.60

2008 -52,987.40 11,771.90 -41,215.50

2007 71,486.30 9,428.50 80,914.80

2006 36,540.20 4,049.00 40,589.20

2005 47,181.90 -5,518.40 41,663.00

2004 38,965.80 3,083.30 42,049.10

2003 30,459.40 4,694.40 35,153.80





2002 3,629.60 48.3 3,677.90

2001 11,970.40 524.4 12,494.80

2000 6,369.90 141 6,510.90

-100,000.00

-50,000.00

0.00

50,000.00

100,000.00

150,000.00

200,000.00

2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

grahp of FIIs invesment in india

eau

deb

tata





SCOPE OF THE STUDY:

The scope of study is very important in the research process. Better the scope of the

study, better the results. It involves explaining the area of study carried out.

In the present project the scope of study is confined only on analyzing the impact

of impact of FIIs on Indian capital market with reference to NSE, BSE and selected

indices of BSE like BSE BANKEX, BSE FMCG and BSE IT. The analysis is limited to

equity market only. The analysis is done for the time period of 01/04/2011 to 30/3/2012

NEED FOR THE STUDY:

Indian economy had shown a rapid growth after globalization. With the entry of foreign

institutional investors tremendous changes have been taken place in the performance of

Indian stock markets. FIIs changed the stock market approach in different way like

introduction of screen based trading, promotion of depository and so on.

The following factors encouraged taking the project, they are

FIIs effects the performance of stock markets FIIs effects the exchange value of INR in forex markets

FII effects the capital formation of the firms.

FIIs effects the return on investment for overseas investors in Indianbanking system





STATEMENT OF THE PROBLEM

An adage says ―a problem well defined is half solved‖. The project deals with the

―Impact of Foreign Institutional Investors on Indian Stock Market‖. This research project

studies the relationship between FIIs investment and stock indices.

The problem in the present project is to find whether there exist any

impact of FIIs on Indian capital market or not, for this purpose we will develop two

hypothesis they are

Null Hypothesis (Ho): The various BSE indices and S&P CNX Nifty index does not rise

with the increase in FIIs investment.

Alternate Hypothesis (Ha): The various BSE indices and S&P CNX Nifty index rises

with the increase in FIIs investment.

Objectives of the Study

The following are the objective of undertaking this study, they are

To find the relationship between FII equity investment pattern and BSE Sensex,

S&P CNX Nifty and selected indices like BSE Bankex, BSE FMCG, BSE IT





To know the performance and trends of Indian stock market with regarding the

FIIs flow.

To study the contribution of FII equity investment in shaping Indian capital

market.

To study the impact of activity of FII on volatility of BSE and NSE indices

Research Methodology

Research Type:

As an exploratory study is conducted with an objective to gain familiarity with the

phenomenon or to achieve new insight into it, this study aims to find the new insights in

terms of finding the relationship between FII‘S and Indian Stock Indices.

Type Of Data Needed:

The project requires the facts and figures of FIIs flow, BSE and NSE index. The data is

collected from already existing sources, so the data needed is secondary in nature for

the present project.

Data Sources:

The data required is of mainly secondary in nature the sources include

Website like

WWW.NSE.COM, WWW.BSE.COM, WWW.MONEYCONTROL.COM, WWW.IIFLCOM,

WWW.SEBICOM, WWW.YAHOOANSWERS.COM, WWW, WEKIPEDIA.COM etc





Research Analysis Tools

Graph tools like pie charts, histograms and bar diagrams, statistical tools like

Regression analysis and Correlation analysis are used.

Regression Analysis: We can analyze how a single dependent variable is

affected by the values of one or more independent variables — for example, how

an athlete's performance is affected by such factors as age, height, and weight.

We can apportion shares in the performance measure to each of these three

factors, based on a set of performance data, and then use the results to predict

the performance of a new, untested athlete.

Correlation: This analysis tool and its formulas measure the relationship between

two data sets that are scaled to be independent of the unit of measurement. The

population correlation calculation returns the covariance of two data sets divided

by the product of their standard deviations. We can use the





2. Profiles

Industry profile:

OVERVIEW OF INDIAN STOCK MARKET

The working of stock exchanges in India started in 1875. BSE is the oldest stock market

in India. The history of Indian stock trading starts with 318 persons taking membership

in Native Share and Stock Brokers Association, which we now know by the name

Bombay Stock Exchange or BSE in short. In 1965, BSE got permanent recognition from

the Government of India. National Stock Exchange comes second to BSE in terms of

popularity. BSE and NSE represent themselves as synonyms of Indian stock market.

The history of Indian stock market is almost the same as the history of BSE.

The 30 stock sensitive index or Sensex was first compiled in 1986. The Sensex is

compiled based on the performance of the stocks of 30 financially sound benchmark

companies. In 1990 the BSE crossed the 1000 mark for the first time. It crossed 2000,

3000 and 4000 figures in 1992. The reason for such huge surge in the stock market was

the liberal financial policies announced by the then financial minister Dr. Man MohanSingh.

The up-beat mood of the market was suddenly lost with Harshad Mehta scam. It came

to public knowledge that Mr. Mehta, also known as the big-bull of Indian stock market

diverted huge funds from banks through fraudulent means. He played with 270 million





shares of about 90 companies. Millions of small-scale investors became victims to the

fraud as the Sensex fell flat shedding 570 points.

To prevent such frauds, the Government formed The Securities and Exchange Board of

India, through an Act in 1992. SEBI is the statutory body that controls and regulates the

functioning of stock exchanges, brokers, sub-brokers, portfolio managers‘ investment

advisors etc. SEBI oblige several rigid measures to protect the interest of investors.

Now with the inception of online trading and daily settlements the chances for a fraud is

nil, says top officials of SEBI.

Sensex crossed the 5000 mark in 1999 and the 6000 mark in 2000. The 7000 mark was

crossed in June and the 8000 mark on September 8 in 2005. Many foreign institutional

investors (FII) are investing in Indian stock markets on a very large scale. The liberal

economic policies pursued by successive Governments attracted foreign institutional

investors to a large scale. Experts now believe the Sensex can soar past 14000 mark

before 2010.

The unpredictable behavior of the market gave it a tag – ‗a volatile market.‘ The factors

that affected the market in the past were good monsoon, Bharatiya Janatha Party‘s riseto power etc. The result of a cricket match between India and Pakistan also affected the

movements in Indian stock market. The National Democratic Alliance led by BJP, during

2004 public elections unsuccessfully tried to ride on the market sentiments to power.

NDA was voted out of power and the Sensex recorded the biggest fall in a day amidst

fears that the Congress-Communist coalition would stall economic reforms. Later prime

minister Man Mohan Singh‘s assurance of ‗reforms with a human face‘ cast off the fears

and market reacted sharply to touch the highest ever mark of 8500.

India, after United States hosts the largest number of listed companies. Global investors

now ardently seek India as their preferred location for investment. Once viewed with

skepticism, stock market now appeals to middle class Indians also. Many Indians

working in foreign countries now divert their savings to stocks. This recent phenomenon





is the result of opening up of online trading and diminished interest rates from banks.

The stockbrokers based in India are opening offices in different countries mainly to cater

the needs of Non Resident Indians. The time factor also works for the NRIs. They can

buy or sell stock online after returning from their work places.

The recent incidents that led to growing interest among Indian middle class are the

initial public offers announced by Tata Consultancy Services, Maruti Udyog Limited,

ONGC and big names like that. Good monsoons always raise the market sentiments. A

good monsoon means improved agricultural produce and more spending capacity

among rural folk.

The bullish run of the stock market can be associated with a steady growth of around

6% in GDP, the growth of Indian companies to MNCs, large potential of growth in the

fields of telecommunication, mass media, education, tourism and IT sectors backed by

economic reforms ensure that Indian stock market continues its bull run.

History of the Indian Stock Market - The Origin

Stock markets refer to a market place where investors can buy and sell stocks. The

price at which each buying and selling transaction takes is determined by the market

forces (i.e. demand and supply for a particular stock.

Let us take an example for a better understanding of how market forces determine stock

prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an

upward movement in its stock price. More and more people would want to buy this stock

(i.e. high demand) and very few people will want to sell this stock at current market price(i.e. less supply). Therefore, buyers will have to bid a higher price for this stock to match

the ask price from the seller which will increase the stock price of ABC Co. Ltd. On the

contrary, if there are more sellers than buyers (i.e. high supply and low demand) for the

stock of ABC Co. Ltd. in the market, its price will fall down.





In earlier times, buyers and sellers used to assemble at stock exchanges to make a

transaction but now with the dawn of IT, most of the operations are done electronically

and the stock markets have become almost paperless. Now investors don‘t have to

gather at the Exchanges, and can trade freely from their home or office over the phone

or through Internet.

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old

history.

18th Century East India Company was the dominant institution and by end of thecentury, business in its loan securities gained full momentum

1830's Business on corporate stocks and shares in Bank and Cotton presses started inBombay. Trading list by the end of 1839 got broader

1840's Recognition from banks and merchants to about half a dozen brokers

1850's Rapid development of commercial enterprise saw brokerage business attractingmore people into the business

1860's the number of brokers increased to 60

1860-61 The American Civil War broke out which caused a stoppage of cotton supplyfrom United States of America; marking the beginning of the "Share Mania" in India

1862-63 The number of brokers increased to about 200 to 250

1865 A disastrous slump began at the end of the American Civil War (as an example,Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87)

ACHIEVEMENTS AND MILESTONES

Pre-Independence Scenario - Establishment of Different Stock Exchanges

1874 With the rapidly developing share trading business, brokers used to gather at astreet (now well known as "Dalai Street") for the purpose of transacting business.

1875 "The Native Share and Stock Brokers' Association" (also known as "The BombayStock Exchange") was established in Bombay





1880's Development of cotton mills industry and set up of many others

1894 Establishment of "The Ahmadabad Share and Stock Brokers' Association"

1880 - 90's Sharp increase in share prices of jute industries in 1870's was followed by

a boom in tea stocks and coal

1908 "The Calcutta Stock Exchange Association" was formed

1920 Madras witnessed boom and business at "The Madras Stock Exchange" wastransacted with 100 brokers.

1923 When recession followed, number of brokers came down to 3 and the Exchangewas closed down

1934 Establishment of the Lahore Stock Exchange

1936 Merger of the Lahore Stock Exchange with the Punjab Stock Exchange

1937 Re-organization and set up of the Madras Stock Exchange Limited (Pvt.) Limitedled by improvement in stock market activities in South India with establishment of newtextile mills and plantation companies

1940 Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited wasestablished

1944 Establishment of "The Hyderabad Stock Exchange Limited"

1947 "Delhi Stock and Share Brokers' Association Limited" and "The Delhi Stocks andShares Exchange Limited" were established and later on merged into "The Delhi StockExchange Association Limited"

Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges in

the country. Lahore Stock Exchange was closed down after the partition of India, and

later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was

registered in 1957 and got recognition only by 1963. Most of the other Exchanges were

in a miserable state till 1957 when they applied for recognition under Securities

Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act





Many more stock exchanges were established during 1980's, namely:

Cochin Stock Exchange (1980)

Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)

Pune Stock Exchange Limited (1982)

Ludhiana Stock Exchange Association Limited (1983)

Gauhati Stock Exchange Limited (1984)

Kanara Stock Exchange Limited (at Mangalore, 1985)

Magadh Stock Exchange Association (at Patna, 1986)

Jaipur Stock Exchange Limited (1989)

Bhubaneswar Stock Exchange Association Limited (1989)

Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)

Vadodara Stock Exchange Limited (at Baroda, 1990)

Coimbatore Stock Exchange

Meerut Stock Exchange

Stock exchange

A Stock Exchange is the place where "Trading operations" are performed which

operates with the support of the Stock Brokers and Traders to trade on the Shares

and Commodities.

An Exchange is often the most important entity of the Stock Market.All the trading

can be done on the Shares of Different companies whose values can be varied

according to the Company Status and Liabilities.

1. Bombay

2. Calcutta

3. Madras

4. Ahmadabad

5. Delhi

6. Hyderabad

7. Bangalore

8. Bombay

9. Calcutta

10. Madras

11. Delhi

12. Indore





DESCRIPTION:-

These exchanges also provide facilities for the issue and redemption of securities as

well as other financial instruments and capital events including the payment of

income and dividends.

The securities traded on exchange include:

-SHARES issued by companies,

-UNIT TRUSTS and DERIVATIVES

-Pooled Investments products and Bonds.

To be cope up with trading, a security is present on the Stock Market that has to be

listed there. Generally there is a central location for recordkeeping and it has

connected with the electronic Networks which gives the speed and accuracy to the

various transactions.Trade is done by the members on the exchange only.

The initial offering of stocks and bonds is for the Investors.This is to be done in the

primary market and further the trading is done in the Secondary market.

ROLE OF STOCK EXCHANGES:

Stock Exchanges plays various roles and i have listed here some of the important

roles:

1.Increasing the capital of the Businesses.

2.Supporting the company's growth.

3.The Savings for investment are mobilized.

4.Sharing of the Profits.

5.Governing the Corporate sector.

6.Creating Investment opportunities for small investors.

7.Barometer of the economy

8.Raising the Government Economy.

MAJOR EXCHANGES OF THE WORLD:-

Following are some of the major exchanges of the World_

1. NewYork Stock exchange





2. Tokyo Stock Exchange

3. NASDAQ

4. NSE

5. London Stock Exchange

6. Shanghai Stock Exchange

7. Australian Securities Exchange

8. Hong Kong Stock Exchange

9. BSE

10.Swiss Exchange

Along with them, there are some of the regional Exchanges In different Countries but

they are not so much popular for theStock Brokers and the Shareholders.

Trading Pattern of The Indian Stock Market

Indian Stock Exchanges allow trading of securities of only those public limited

companies that are listed on the Exchange(s). They are divided into two categories:

Types of Transactions





The flowchart below describes the types of transactions that can be carried out on the

Indian stock exchanges:

Indian stock exchange allows a member broker to perform following activities:

Act as an agent,

Buy and sell securities for his clients and charge commission for the same,

Act as a trader or dealer as a principal,

Buy and sell securities on his own account and risk.

COMPANY PROFILES:

BOMBAY STOCK EXCHANGE (BSE)





the Bombay Stock Exchange (BSE) (Template: Lang-Marathi Bombay Śhare Bāzaār)

(formerly, The Stock Exchange, Bombay) is a stock exchange located on Dalal Street,

Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of

the companies listed on the BSE was US$1 trillion as of December 2011, making it the

6th largest stock exchange in Asia and the 14th largest in the world. The BSE has the

largest number of listed companies in the world.

As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scripts

on the stock exchange, the Bombay Stock Exchange has a significant trading volume.

The BSE SENSEX, also called "BSE 30", is a widely used market index in India and

Asia. Though many other exchanges exist, BSE and the National Stock Exchange of

India account for the majority of the equity trading in India. While both have similar total

market capitalization (about USD 1.6 trillion), share volume in NSE is typically two times

that of BSE.Contents

Hours of operation Session Timing: 9.15-15.30

The hours of operation for the BSE quoted above are stated in terms the local time

(GMT + 5:30). BSE's normal trading sessions are on all days of the week exceptSaturday, Sundays and holidays declared by the Exchange in advance.

History:

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the

1850s, when four Gujarati and one Parsi stockbroker would gather under banyan trees

in front of Mumbai's Town Hall. The location of these meetings changed many times, asthe number of brokers constantly increased. The group eventually moved to Dalal Street

in 1874 and in 1875 became an official organization known as 'The Native Share &

Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be

recognized by the Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE SENSEX in 1986, giving the BSE a





means to measure overall performance of the exchange. In 2000 the BSE used this

index to open its derivatives market, trading SENSEX futures contracts. The

development of SENSEX options along with equity derivatives followed in 2001 and

2002, expanding the BSE's trading platform. Historically an open outcry floor trading

exchange, the Bombay Stock Exchange switched to an electronic trading system in

1995. It took the exchange only fifty days to make this transition. This automated,

screen-based trading platform called BSE On-line trading (BOLT) currently has a

capacity of 8 million orders per day. The BSE has also introduced the world's first

centralized exchange-based internet trading system, BSEWEBx.co.in to enable

investors anywhere in the world to trade on the BSE platform.[5] The BSE is currently

housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

Milestones

Following is the milestones of the SENSEX through Indian stock market history.

1830's Business on corporate stocks and shares in Bank and Cotton presses

started in Mumbai.

1860-1865 Cotton price bubble as a result of the American Civil War. 1870 - 90's Sharp increase in share prices of jute industries followed by a boom

in tea stocks and coal

1978-79 Base year of SENSEX, defined to be 100.

1986 SENSEX first compiled[6] using a market Capitalization-Weighted

methodology for 30 component stocks representing well-established companies

across key sectors.

30 October 2006 The SENSEX on October 30, 2006 crossed the magical figure

of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It took 135

days for the SENSEX to move from 12,000 to 13,000 and 123 days to move from

12,500 to 13,000.





6 July 2007 The SENSEX on July 6, 2007 crossed the magical figure of 15,000

to touch 15,005 points in afternoon trade. It took seven months for the SENSEX

to move from 14,000 to 15,000 points..

The SENSEX finally ended with a gain of 654 points at 16,323. The NSE Nifty

gained 186 points to close at 4,732.

26 September 2007 The SENSEX scaled yet another height during early morning

trade on September 26, 2007. Within minutes after trading began, the SENSEX

crossed the 17,000-mark. Some profit taking towards the end saw the index slip

into red to 16,887 - down 187 points from the day's high. The SENSEX ended

with a gain of 22 points at 16,921.

9 October 2007 The BSE SENSEX crossed the 18,000-mark on October 9, 2007.

It took just 8 days to cross 18,000 points from the 17,000 mark. The indexzoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to

close at an all-time high of 18,280. The market set several new records including

the biggest single day gain of 789 points at close, as well as the largest intra-day

gains of 993 points in absolute term backed by frenzied buying after the news of

the UPA and Left meeting on October 22 put an end to the worries of an

impending election.

15 October 2007 The SENSEX crossed the 19,000-mark backed by revival of

funds-based buying in blue chip stocks in metal, capital goods and refinery

sectors. The index gained the last 1,000 points in just four trading days. The

index touched a fresh all-time intra-day high of 19,096, and finally ended with a

smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.

29 October 2007 The SENSEX crossed the 20,000 mark on the back of

aggressive buying by funds ahead of the US Federal Reserve meeting. The

index took only 10 trading days to gain 1,000 points after the index crossed the

19,000-mark on October 15. The major drivers of today's rally were index

heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank

and SBI among others. The 30-share index spurted in the last five minutes of

trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87

points before ending at its fresh closing high of 19,977.67, a gain of 734.50





points. The NSE Nifty rose to a record high 5,922.50 points before ending at

5,905.90, showing a hefty gain of 203.60 points.

8 January 2008 The SENSEX peaks. It crossed the 21,000 mark in intra-day

trading after 49 trading sessions. This was backed by high market confidence of

increased FII investment and strong corporate results for the third quarter.

However, it later fell back due to profit booking.

25 June 2008 The SENSEX touched an intra day low of 13,731 during the early

trades, then pulled back and ended up at 14,220 amidst a negative sentiment

generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow

continued in this week.

6 October 2008 The SENSEX closed at 11801.70 hitting the lowest in the past 2

years. 10 October 2008 The SENSEX today closed at 10527, 800.51 points down from

the previous day having seen an intraday fall of as large as 1063 points. Thus,

this week turned out to be the week with largest percentage fall in the SENSEX

19 October 2010 BSE introduced the 15-minute special pre-open trading

session, a mechanism under which investors can bid for stocks before the

market opens. The mechanism, known as 'pre-open session call auction', lasted

for 15 minutes (from 9:00-9:15 am)

5 November 2010 BSE SENSEX crossed the 21000 mark (exactly 21004.96).

27 December 2010 BSE SENSEX is at 20,028.93.

BSE indices

MIDCAP

SMLCAP

BSE-100

BSE-200

BSE-500





BSE-GREENEX

DOLLEX

BANKEX

POWER

CD

CG

AUTO

PSU

REALTY

METAL

FMCG

TECk

IT

HC

OIL&GAS

Awards

The World Council of Corporate Governance has awarded the Golden Peacock

Global CSR Award for BSE's initiatives in Corporate Social Responsibility (CSR).





The Annual Reports and Accounts of BSE for the year ended March 31, 2006

and March 31, 2007 have been awarded the ICAI awards for excellence in

financial reporting.

It has been cited as one of the world's best performing stock market by Reuters.

The Human Resource Management at BSE has won the Asia - Pacific HRM

awards for its efforts in employer branding through talent management at work,

health management at work and excellence in HR through technology. Bombay

Stock Exchange - Finance Learners

NATIONAL STOCK EXCHANGE OF INDIA (NSE)

The National Stock Exchange (NSE) (Hindi Rashtriya Śhare Bāzaār) is a stock

exchange located at Mumbai, India. It is the 16th largest stock exchange in the world by

market capitalization and largest in India by daily turnover and number of trades, for

both equities and derivative trading.[2] NSE has a market capitalization of around

US$985 billion and over 1,646 listings as of December 2011.[3] Though a number of

other exchanges exist, NSE and the Bombay Stock Exchange are the two most

significant stock exchanges in India, and between them are responsible for the vast

majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as theNSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by

market capitalization.

NSE is mutually owned by a set of leading financial institutions, banks, insurance

companies and other financial intermediaries in India but its ownership and

management operate as separate entities.[4] There are at least 2 foreign investors

NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[5] As of 2006,

the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.[6]

NSE is the third largest Stock Exchange in the world in terms of the number of trades in

equities.[7] It is the second fastest growing stock exchange in the world with a recorded

growth of 16.6%.[8]





Origins

The National Stock Exchange of India was set up by Government of India on the

recommendation of Pherwani Committee in 1991.Promoted by leading Financial

institutions essentially led by IDBI at the behest of the Government of India, it was

incorporated in November 1992 as a tax-paying company. In April 1993, it was

recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956.

NSE commenced operations in the Wholesale Debt Market (WDM) segment in June

1994. The Capital market (Equities) segment of the NSE commenced operations in

November 1994, while operations in the Derivatives segment commenced in June 2000.

Markets

Currently, NSE has the following major segments of the capital market:

Equity

Futures and options

Retail debt market

Wholesale debt market

Currency futures

Mutual fund

Stocks lending and borrowing

In August 2008 currency derivatives were introduced in India with the launch of

Currency Futures in USD INR by NSE. Currently it has also launched currency futures

in Euros, pounds and yen. Interest Rate Futures were introduced for the first time in

India by NSE on 31 August 2009, exactly one year after the launch of Currency Futures.





NSE became the first stock exchange to get approval for interest rate futures, As

recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on

7% 10 Year Government of India (Notional) was launched with quarterly maturities.

NSE's normal trading sessions. 9:15 AM TO 3:15(3:30)

Mile Stones

November 1992 Incorporation

April 1993 Recognition as a stock exchange

June 1994 Wholesale Debt Market segment goes live

November 1994 Capital Market (Equities) segment goes live

July 1995 Establishment of Investor Protection Fund

October 1995 Became largest stock exchange in the country

December 1996 Launch of CNX Nifty Junior

May 1998 Launch of NSE's Web-site: www.nse.co.in

July 1998 Launch of NSE's Certification Programme in Financial Market

February 2000 Commencement of Internet Trading

June 2000 Commencement of Derivatives Trading July 2001 Commencement of trading in Options on Individual Securities

January 2003 Commencement of trading in Retail Debt Market

June 2003 Launch of Interest Rate Futures

August 2003 Launch of Futures & options in CNXIT Index

June 2007 NSE launches derivatives on Nifty Junior & CNX 100

October 2007 NSE launches derivatives on Nifty Midcap 50

October 2010 Launch of 15-minute special pre-open trading session, a

mechanism under which investors can bid for stocks before the market opens.

Graph of S&P CNX Nifty from January 1997 to March 2011

Indices





NSE also set up as index services firm known as India Index Services & ProductsLimited (IISL) and has launched several stock indices, including:[11]

S&P CNX Nifty (Standard & Poor's CRISIL NSE Index)

CNX Nifty Junior

CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)

S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)

CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

Certifications

NSE also conducts online examination and awards certification, under its programmes

of NSE's Certification in Financial Markets (NCFM)[1]. Currently, certifications are

available in 32 modules, covering different sectors of financial and capital markets, both

at beginner and advanced levels. the list of the various modules can be found at the

following official site of NSE India. [2] Branches of the NSE are located throughout

India. NSE, in collaboration with reputed colleges and institutes in India, has been

offering a short-term course called NSE Certified Capital Market Professional (NCCMP)

since August 2009, in the campuses of the respective colleges/ institutes





3. LITERATURE REVIEW:

1. Chakrabarti (2001) has examined in his research that following the Asian crisis

and the bust of info-tech bubble internationally in 1998-99 the net FII has declined by

US$ 61 million. But there was not much effect on the equity returns. This negative

investment would possibly disturb the long-term relationship between FII and the othervariables like equity returns, inflation, etc. has marked a regime shift in the determinants

of FII after Asian crisis. The study found that in the pre-Asian crisis period any change in

FII found to have a positive impact on the equity returns. But in the post-Asian crisis

period it was found the reverse relation that change in FII is mainly due to change in

equity returns. Hence, any empirical exercise on FII has to take care of this fact.

2. Stanley Morgan (2002) has examined that FIIs have played a very important role

in building up India‘s forex reserves, which have enabled a host of economic reforms.

Secondly, FIIs are now important investors in the country‘s economic growth despite

sluggish domestic sentiment. The Morgan Stanley report notes that FII strongly

influence short-term market movements during bear markets. However, the correlation

between returns and flows reduces during bull markets as other market participants

raise their involvement reducing the influence of FIIs. Research by Morgan Stanley

shows that the correlation between foreign inflows and market returns is high during

bear and weakens with strengthening equity prices due to increased participation by

other players.

3. Sivakumar S (2003) has analyzed the net flows of foreign institutional investment

over the years, it also briefly analyses the nature of FII flows based on research,





explores some determinants of FII flows and examines if the overall experience has

been stabilizing or destabilizing for the Indian capital market.

4. Rai Kulwant et al (2003) held that the present study tries to examine the

determinants of Foreign Institutional Investments in India, which have crossed almost

US$ 12 billions by the end of 2002. Given the huge volume of these flows and its impact

on the other domestic financial markets understanding the behavior of these flows

becomes very important at the time of liberalizing capital account. In this study, by using

monthly data, we found that FII inflow depends on stock market returns, inflation rate

(both domestic and foreign) and ex-ante risk. In terms of magnitude, the impact of stock

market returns and the ex-ante risk turned out to be major determinants of FII inflow.

This study did not find any causation running from FII inflow to stock returns as it was

found by some studies. Stabilizing the stock market volatility and minimizing the ex-ante

risk would help in attracting more FII inflow that has positive impact on the real

economy.

5. Agarwal, Chakrabarti et al (2003) have found in their research that the equity

return has a significant and positive impact on the FII. But given the huge volume of

investments, foreign investors could play a role of market makers and book their profits,i.e., they can buy financial assets when the prices are declining thereby jacking-up the

asset prices and sell when the asset prices are increasing. Hence, there is a possibility

of bi-directional relationship between FII and the equity returns.

4. Data Analysis and Interpretation

















Table showing the details of results

particulars correlationstandard

error regression equation

NSE 0.248844157 330.0357 y=2067.441+0.007028x

BSE 0.223445284 1145.615205 y=7618.636+0.021765x

BSE Bankex 0.304052563 1082.75011 y=-149.157395+0.028639928x

BSE FMCG 0.62006164 144.4074845 y=-303.359+0.009459x





RESULTS

The following inferences are drawn from the above data analysis they are

1. FIIs vs. NSE

The correlation between FIIs and NSE is only 0.2466 which is very week and this

shows that FIIs do have impact on the nifty movement but it is not significant. FIIs

are not influencing the nifty movement very much

The standard error comes out to be330.0367 which is very high and it represents

the deviations from the mean value calculate.

The dependent variable (NSE) index can be calculated by using the followingregression equation.

Y=2067.441+0.007028X-Standard error

2. FIIs vs. BSE.

The correlation between FIIs flows and BSE Index is only 0.223446 which is a

week correlation and have some impact on the movement of BSE index and is

not influencing much.

The standard error comes out to be1146.523 which is very high and it

represents the deviations from the mean value calculate

The dependent variable (NSE) index can be calculated by using the following

regression equation

BSE IT 0.33862846 419.6329817 y=90.73992816+0.012516159x





Y=7618.636+0.021765x- standard error

3. FIIs vs. BSE Bankex

The correlation between FIIs and BSE Bankex is some what better than two

index and is positive in nature and can have a influence ability on the movement

of BSE Bankex index. The correlation stands at 0.304052563

The standard error comes out to be 1082.75011 which is very high and it

represents the deviations from the mean value calculate.

The dependent variable (BSE Bankex) index can be calculated by using the

following regression equationy=-149.157395+0.028639928x- standard error

4. FIIs vs. BSE FMCG

The correlation between FIIs and BSE Bankex is very strong and is positive in

nature and can have a more influence ability on the movement of BSE Bankex

index. The correlation stands at 0.62006164

The standard error comes out to be 144.4074845 which is very low and it


The dependent variable (BSE FMCG) index can be calculated by using the

following regression equation

y=-303.359+0.009459x- standard error

5. FIIs vs. BSE IT

The correlation between FIIs and BSE IT is significant and is positive in nature

and can have a influence ability on the movement of BSE IT index. The

correlation stands at 0.33862846





The standard error comes out to be 419.6329817 which is very high and it


The dependent variable (BSE IT) index can be calculated by using the following

regression equation

y=90.73992816+0.012516159x- standard error

Reasons for the existence of different type of correlation between FIIs VS NSE,

BSE and various Indices:

FIIs do not have significant impact on the movement of NSE snd BSE index and

this is due to following reasons

Global economical changes

RBI Credit policy

Growth rate of other developed and developing counties stock markets

Forex value of INR

FIIs have significant impact on the movement of specific BSE Indices like BSE

FMCG and this is due to following reasons

Strong earnings ability of FMCG firms

Less level of competitions

Continuous upward movement of stocks of FMCG Co.

Fiis have positive significant on the movement of specific indices like BSE

Bankex and BSE IT

India is very strong in Banking and Financial system

The growth rate of banking industry is good

India is one of the major exporter of IT and BPO services to the world

market

The software sector is provided by skilled labor at lower cost.

Findings:





Table showing the changes of FIIs and indexes (in %)

particulars 1/4/2011 30/03/2012 changes in %

FIIs 451216 488346 8.22

NSE 5826 5295 -10.38

BSE 19420 17404 -10.22

BSE BANKEX 13169 11751 -10.76

BSE FMCG 3612 4493 24.39

BSE IT 6517 6081 -6.69

From the above table we can draw some interesting facts they are

FIIs closed in a positive at the end by raising 8.22% from the 451216 to 488346,which indicates that the FIIs are positive in Indian capital markets. This is

because of strong growth rate of GDP when compared to other countries.

In spite of negative performance of Indian markets, FIIs are investing in Indian

capital markets because of lack of better investment chances.

NSE and BSE index closed at negative by loosing 10.38% and 10.22%

respectively this is due the worsening of world economy, raise in inflation level,

lower IIP growth act. along with some other internal problems.

BSE Bankex also posted negative returns of 10.76% by decreasing from 13169

to 11751. This is due to failure of banking and financial system in other countries





and downgrading of banking institutions by international credit rating agencies

both in India and world wide.

BSE FMCG has posted a huge rise in index and gave positive returns of 24%.

FMCG is most attracting investment opportunity for FIIs and domestic investors.

The sector is ever green and rewarding one.

BSE IT index also posted negative returns of 6.69% but it is minimum when

compared with other index for the same period. this is due to the strong growth of

Indian IT sector and also the decreasing of rupee value with USD also

encouraged the investment into this sector.

5. CONCLUSION





In developing countries like India foreign capital helps in increasing the productivity of

labor and to build up foreign exchange reserves to meet the current account deficit.

Foreign Investment provides a channel through which country can have access to

foreign capital.

According to Data analysis and findings, it can be concluded that FII do have significant

impact on the Indian Stock Market but there are other factors like government policies,

budgets, bullion market, inflation, economical and political condition, etc. do also have

an impact on the Indian stock market. There is a positive correlation between stock

indices and FIIs but FIIs didn‘t have any significant impact on Indian Stock Market. The

null hypothesis is rejected. BSE FMCG, showed high positive correlation with FII, BSE

IT and BSE Bankex have also significant positive correlation with FIIs but rest of the

index like NSE and BSE showed very less positive correlation with FII. Also thecoefficient of determination is less in all the case. It shows the absence of linear relation

between FII and stock index. This does not mean that there is no relation between

them.

One of the reasons for absence of any linear relation can also be due to the sample

data. The data was taken on weekly basis. The data on daily basis can give more

positive results (may be). Also FII is not the only factor affecting the stock indices. There

are other major factors that influence the bourses in the stock market.

LIMITATIONS

Besides following scientific methodologies the study has come across some limitations.

The data is taken on weekly basis. The data on daily basis can give more

positive results.

Due to time constraint, my project report is not fully exhaustive.

Secondary data that I have used in this study may not give true picture of the

concern.

The data taken for study may not give the clear picture for analysis of impact of

FIIs on Indian capital market





SUGGESTIONS AND RECOMENDATIONS

Some of the steps that can be taken to help influence the choices made by foreign

institutional investors include:

The Government should cut its fiscal deficits, which would result in strengthening

the economy as a whole.

Creating infrastructure and other facilities to attract foreign investment. As

described earlier, an array of services can help promote foreign institutional

investment in India, ranging from basic services such as the provision of

electricity and clean water, to fair and effective dispute resolution systems.

The ability of governments to prevent or reduce financial crises also has a great

impact on the growth of capital flows. Steps to address these crises include

strengthening banking supervision, requiring more transparency in international

financial transactions and ensuring adequate supervision and regulation of

financial markets.

An attempt should be made to bring down the inflation level to attract more

foreign institutional investments into India.

The Banking system needs to be strengthened which could be achieved by

reducing the number of Non Performing Assets. The FIIs investments, though shown an increasing trend over time, are still far

below the permissible limits. One such measure in this line could be the newly

announced INDONEXT, the platform for trading the small and mid-cap

companies, which might bring some focus on these companies and hopefully add





some liquidity and volume to their trading, which may attract some further

investments in them by FIIs.

The fact is that developing country like India has its own compulsions arising out

of the very state of their social, political and economic development. To attract

portfolio investments and retain their confidence, the host countries have to

follow stable macro-economic policies,

The provision for clear procedures must be followed in the event of disputes

between investors and host governments, to ensure that rules are adhered to

and that arbitration may be established by mutual consent.

Countries may impose these kinds of measures like expropriation, domestic

content requirements, restrictions on capital outflows of short term investments,

etc with the intention of protecting domestic industries from internationalcompetition and promoting their economic development, but this usually leads to

misallocation of resources away from the natural economic capabilities of

nations.

There has been a significant shift in the character of global capital flows to the

developing countries in recent years in that the predominance of private account

capital transfer and especially portfolio investments (FPI) increased considerably.

In order to attract portfolio investments which prefer liquidity, it has been

advocated to develop stock markets.

BIBLIOGRAPHY

References for articles:

Bose Suchismita and Coondoo Dipaankar (2005): ―The Impact of FII Regulations

in India‖, Journal: International Journal of financial market trends. Vol 30.Publisher: MCB UP Ltd

Chakrabarti (2001), Journal: Journal of foreign institution investments Vol 27.

Publisher: SSRN Group Publishing Limited.

Michael Mossback and Mohammad Najand of Old Dominion University (2000):

―Are the structural changes in MF investing, driving the US stock markets to its





current levels‖, Journal: International Journal of bull and bear pulls, Vol: 25.

Publisher: MCB UP Ltd.

Richard W.Sias of Washington State University (1996) : ―Price pressure and the

role of substitutional investors in closed-end funds‖ , Journal: Journal of ICFAI,

Vol: 25. Publisher: MCB UP Ltd.

Sandhya Ananthanarayanan of Nanyang Technological University (2004) :

―Foreign Institutional Investors and Security Returns: Evidence from Indian Stock

Exchanges‖, Journal: International Journal of foreign money supply

Management, Vol: 28. Publisher: MCB UP Ltd.

Sikdar Soumyen (2006) : ―Foreign Capital Inflow into India: Determinants and

Management‖, Journal: Journal of Institutional Investors . Vol 17. Publisher:

Emerald Group Publishing Limited Sivakumar S (October 2003) : ―FIIs: Bane or boon?‖ , Journal : Journal of stock

market volatility , Vol: 34. Publisher: MCB UP Ltd.

References from web links:

http://stockstalks.com/stocktalksforums/index.php

http://www.sebi.gov.in/workingpaper/stock.pdf

http://www.sharetipsinfo.com/Fii-Newsstockmarket.html

http://mar.sagepub.com/cgi/content/abstract/2/3/287

http://papers.ssrn.com/sol3/papers.cfm

http://www.joaag.com/uploads

www.bseindia.com

www.nseindia.com

www.sebi.org.

wWw.rbi.org

www.moneycontrol.com

References from Journals:





Economic Political Weekly

ICFAI Journals

Magazines and Newspapers:

Economic times

Annuxure

Data related to FIIs flow and the closing index value of NSE,

BSE, BSE Bankex, BSE FMCG, BSE IT

Date

(X) FIIs

flows(in

cr)

NSE

index

BSE

index

BSE

Bankex

index

BSE

FMCG

index

BSE IT

index

1/4/2011 451216 5826 19420 13169 3612 6517





8/4/2011 451352 5842 19451 13299 3637 6557

15/4/2011 451438 5824 19386 13382 3713 6258

21/4/2011 453359 5884 19602 13545 3730 6210

29/4/2011 451816 5749 19135 13076 3755 6144

6/5/2011 449058 5551 18518 12670 3642 6056

13/5/2011 448419 5544 18531 12590 3803 6039

20/5/2011 444204 5486 18326 12158 3762 6063

27/5/2011 444830 5476 18266 12220 3777 5950

3/6/2011 447304 5516 18376 12309 3883 6003

10/6/2011 447775 5485 18268 12225 3861 6093

17/6/2011 446300 5366 17870 12091 3854 5815

24/7/2011 445200 5471 18240 12393 3883 5991

1/7/2011 445380 5627 18762 12853 4048 6258

8/7/2011 455528 5660 18858 12940 4040 6199

15/7/2011 456359 5581 18561 12846 4039 5856

Date

(X) FIIs

flows(in

cr)

NSE

index

BSE

index

BSE

Bankex

index

BSE

FMCG

index

BSE IT

index

22/7/2011 456556 5633 18722 12908 4095 5932

29/7/2011 457804 5482 18197 12447 4093 5835





5/8/2011 456312 5211 17305 11833 3913 5222

12/8/2011 451975 5072 16839 11636 3908 5004

19/8/2011 450923 4845 16141 10763 3898 4738

26/8/2011 446582 4747 15848 10245 3892 4719

2/9/2011 447649 5040 16821 10949 3995 4995

9/9/2011 450011 5059 16866 11097 3960 4950

16/9/2011 448800 5084 16933 11127 3933 5107

23/9/2011 448668 4867 16162 10760 3831 4985

30/9/2011 446812 4943 16453 10850 3910 5275

7/10/2011 443784 4888 16232 10347 3900 5241

14/10/2011 446055 5132 17082 11064 3991 5698

21/10/2011 445708 5049 16785 11094 3966 5525

28/10/2011 446129 5360 17804 11382 4153 5830

4/11/2011 449276 5284 17562 11302 4183 5762

11/11/2011 450417 5168 17192 10686 4234

5744

Date

(X) FIIs

flows(in

cr)

NSE

index

BSE

index

BSE

Bankex

index

BSE

FMCG

index

BSE IT

index

18/11/2011 449846 4905 16371 10161 4075 5614

25/11/2011 445450 4710 15695 9768 3899 5403




2/12/2011 445336 5050 16846 10550 4111 5726

9/12/2011 446535 4866 16213 10157 3989 5733

16/12/2011 445152 4651 15491 9420 3961 5712

23/12/2011 444047 4714 15738 9529 4088 5675

30/12/2011 444390 4624 15454 9153 4035 5751

6/1/2012 445396 4854 15867 9736 4032 5878

13/1/2012 446862 4866 16154 10300 4071 5482

20/1/2012 450394 5048 16739 10912 4035 5499

27/1/2012 453463 5204 17233 11282 4063 5721

3/2/2012 459620 5325 17604 11643 4120 5912

10/2/212 464291 5384 17745 11986 4130 6050

17/2/2012 468614 5564 18289 12736 4153 6266

24/2/2012 472047 5429 19723 12068 4190 6309

2/3/2012 480886 5359 17636 11996 4130 6103

9/3/2012 481217 5333 17503 12086 4164 6132

16/3/2012 487124 5317 17466 11969 4284 6069

23/3/2012 489076 5278 17361 11860 4403 6024

30/3/2012 488346 5295 17404 11751 4493 6081

Documents

Mohan Babu Final Project