Abstract

In a market, investors belong to a versatile category, as they may be classified as retail investors or institutional investors. Institutional Investors can be Domestic Institutional Investors (DIIs) and Foreign Institutional Investors (FIIs). Both the segments of investors pursue a distinct strategy of investment. Many studies have been conducted on the FIIs trading pattern but very less has been conducted on the DIIs. So, in this study the impact of domestic institutional investors along with foreign institutional investors is examined with respect to Indian Stock Market. BSE is one of the most traded stock exchange; so to complete the study SENSEX is taken as a bench mark index of BSE. To find the said relationship, net trading data on daily frequency has been taken for DIIs and FIIs. Data has been collected from April 2007 to April 2018. Various tools like Correlation, VAR and Granger Causality test have been applied.

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