The impact of foreign institutional investors on the Mumbai (Bombay) Stock Exchange: A case study

Type :

Case study

Pages :

47 pages

Format :

.doc

Published date :

03/05/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Abstract.
Introduction.
1. Background.
2. Overview of the Indian economy.
3. Indian growth.
4. Development of Indian stock markets.
5. National stock exchange India.
6. Case study.
Literature review.
1. Foreign institutional investors in India.
2. Annual report 2006-2007.
3. Importance of foreign institutional investors in India.
4. Benefits of foreign institutional investors in India.
5. Costs of foreign institutional investors.
6. Factors wich attract foreign institutional investors.
7. Impacts of foreign institutional investors.
Research methodology.
1. Introduction.
2. Research defined.
3. Research philosophy.
4. Research strategies.
5. Case study.
6. Interviews.
Research analysis.
1. Introduction.
2. Sampling.
3. Responses from key individuals of the Bombay Stock Exchange.
Conclusion and recommendations.
1. Limitations and further research.
Bibliography.
Graphs included.

Abstract

To aid foreign private capital flows in form of foreign institutional investors developing countries were advised by World Bank to develop their stock markets. It was suggested that these investments would help the stock markets directly through widening investor foundation and indirectly gripping the local authorities to improve the trading system. While the volatility associated with the foreign institutional investor's investment strategies is well known, there was also concern that foreign institutional investors might introduce distortion in the host country markets due to pressure on them to secure capital gains. foreign flows such as foreign institutional investors have also known to influence the economic behaviour of the country positively. Countries with well developed financial markets gain significantly from foreign institutional investors Given the huge volume of foreign institutional investor's capital flow and their influence on the domestic financial markets, it becomes important to asses the impact of foreign institutional investors impact on the Indian economy and Indian stock exchange.

In this context, the papers seeks to assess and examines the impact of foreign institutional investors on the Indian stock market and the Indian economic growth and relatively finds their advantages, disadvantages and study the relationship between foreign institutional investors and trends in the Indian stock market. The study also examine the trends and changing patterns of financial market after globalisation, and also ascertain the impact of domestic financial policy variables on the foreign institutional investors