This study examines the trends and behavior of Foreign Portfolio Investment (FPI) in India's equity and debt markets during the period from 2015 to 2025. Foreign portfolio investment serves as an important source of capital for emerging economies and plays a significant role in influencing market liquidity, investment activity, and overall financial market performance. The research focuses on understanding the factors that drive FPI movements and evaluating their implications for India's financial system. The study investigates the influence of both domestic and international macroeconomic conditions on foreign investment decisions. During the selected period, global financial markets experienced considerable uncertainty due to various economic and political developments. Events such as the COVID-19 pandemic, geopolitical conflicts, changing investor sentiment, and shifts in monetary policies by major central banks had a substantial impact on the direction and volume of portfolio investments. These factors contributed to significant variations in FPI inflows and outflows across India's capital markets. The research analyzes the relationship between FPI trends and key economic indicators, including interest rates, exchange rate fluctuations, and market capitalization. The findings reveal that foreign investment flows are highly responsive to changes in economic conditions and market expectations. The study also identifies important patterns in investment behavior and highlights the sensitivity of portfolio capital to both global and domestic developments. Overall, the research provides valuable insights into the dynamics of FPI and its role in shaping the performance and stability of India's financial markets.
Mamta Singh· Journal of Commerce, Economi...· 0 citations
This study examines the impact of Foreign Institutional Investors (FIIs), also referred to as Foreign Portfolio Investors (FPIs), on the growth, liquidity, and trading performance of the Indian capital market over the period 2015–2025. The primary objective is to assess whether foreign institutional investment contributes to market development and efficiency or leads to changes in market dynamics. Using secondary data collected from reliable financial and regulatory sources, the study evaluates the relationship between FII/FPI investment flows and key indicators of capital market performance. The empirical analysis is based on three widely recognized market indicators: the Market Capitalization Ratio (MCR), which measures the size of the capital market relative to Gross Domestic Product (GDP); the Turnover Ratio (TR), which reflects market liquidity and trading efficiency; and the Value Traded Ratio (VTR), which assesses trading activity in relation to the overall economy. To obtain accurate and meaningful results, the study applies the Augmented Dickey–Fuller (ADF) test to verify the stability of the time-series data and uses the Pairwise Granger Causality test to identify the direction of influence between FII/FPI investment flows and the selected indicators of the Indian capital market. The findings provide evidence on the extent to which foreign institutional investment influences market liquidity, trading activity, and overall market development. The study contributes to the understanding of the role of FIIs/FPIs in the Indian capital market and offers useful insights for policymakers, regulators, investors, and researchers in designing strategies that promote sustainable market growth while maintaining financial stability.
Mamta Singh· International Journal of Inn...· 0 citations
