Foreign Investments- Factors and Impact on Markets
We have heard many times that the market crashed or th e nifty went down. There can be many reasons behind it. No matter what the reason (or the cause) is, it leads to a change in the stock trader's sentiments and the end result is the market either going up or down. For a long time, it has been observed that foreign investors are the ones whose actions decide the final fate of the day. Now one of the reasons can be that DIIs (domestic institutional investors) are not as strong as the FIIs (foreign institutional investors) are. As foreign investors are an influential factor of the financial markets, in this article, we will first analyze whether there is any relationship between FII activity (amount invested or liquidated by foreign investors in stock market) and Nifty Index. I will then explain three big moves of recent time, which are the factors affecting foreign investments and in turn the financial markets. In the whole article foreign investors are the ones who are buying or