Article: An empirical study on foreign institutional investors in Indian capital market Journal: International Journal of Intelligent Enterprise (IJIE) 2025 Vol.12 No.2 pp.103 - 125 Abstract: The stock market plays a significant role in national economic growth by stimulating industry and overall development. Developed countries' stock markets tend to be more efficient than emerging markets. As one of the world's emerging economies, India is improving its stock market standards to attract foreign investment. This foreign investment helps supplement funds for domestic companies, contributing to the country's economic growth. Emerging stock markets have become attractive to foreign investors due to their high growth potential and corporate earnings, which often exceed those of developed markets. These markets are more volatile than developed ones. This study examines how FIIs affect sector-wise market returns. It also analyses FII shareholdings and their impact on BSE Sensex company market capitalisation. The study examines how FIIs/FPIs affect sector-wise market returns and the market capitalisation of selected BSE Sensex companies through their shareholding patterns. Net FII inflows, chosen indexes return, FII investments in companies, and BSE Sensex company market capitalisation are studied. They used linear regression from April 2010 to March 2021. Inderscience Publishers - linking academia, business and industry through research

Title: An empirical study on foreign institutional investors in Indian capital market

Authors: J. Sai Sudha; V.S. Prasad Kandi; K. Ravi Kiran Yasaswi

Addresses: Department of MBA, KL Business School, Koneru Lakshmaiah Education Foundation, Vaddeswaram Campus, Guntur District-522502, Andhra Pradesh, India ' Department of MBA, KL Business School, Koneru Lakshmaiah Education Foundation, Vaddeswaram Campus, Guntur District-522502, Andhra Pradesh, India ' School of Management Studies, Lakireddy Balireddy College of Engineering, Mylavaram, Andhra Pradesh, India

Abstract: The stock market plays a significant role in national economic growth by stimulating industry and overall development. Developed countries' stock markets tend to be more efficient than emerging markets. As one of the world's emerging economies, India is improving its stock market standards to attract foreign investment. This foreign investment helps supplement funds for domestic companies, contributing to the country's economic growth. Emerging stock markets have become attractive to foreign investors due to their high growth potential and corporate earnings, which often exceed those of developed markets. These markets are more volatile than developed ones. This study examines how FIIs affect sector-wise market returns. It also analyses FII shareholdings and their impact on BSE Sensex company market capitalisation. The study examines how FIIs/FPIs affect sector-wise market returns and the market capitalisation of selected BSE Sensex companies through their shareholding patterns. Net FII inflows, chosen indexes return, FII investments in companies, and BSE Sensex company market capitalisation are studied. They used linear regression from April 2010 to March 2021.

Keywords: foreign institutional investors; FIIs; Sensex and market capitalisation; domestic companies; emerging economies; Indian capital market; capital goods and technology; banking and finance sectors.

DOI: 10.1504/IJIE.2025.145656

International Journal of Intelligent Enterprise, 2025 Vol.12 No.2, pp.103 - 125

Accepted: 01 Oct 2024
Published online: 11 Apr 2025 *

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Title: An empirical study on foreign institutional investors in Indian capital market

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