The study investigates the intricate relationship between Foreign Institutional Investors (FII) and the Indian stock market, aiming to unravel the multifaceted impact of FII inflows on market dynamics, volatility, and sectoral performance.Over the years, the Indian stock market has witnessed substantial participation from Foreign Institutional Investors, influencing market sentiment, liquidity, and overall stability.This research explores the nuanced effects of FII investments, encompassing an analysis of historical trends, market movements, and regulatory frameworks governing FII participation.The study focuses on delineating the impact of FII on market volatility and stability, scrutinizing the varying effects across different sectors, and evaluating the efficacy of regulatory measures in governing FII behaviour.By examining these dimensions, the research aims to provide valuable insights into the interplay between FII activities and the Indian stock market's development.The findings seek to aid stakeholders, policymakers, and investors in making informed decisions amidst the evolving financial landscape, thereby contributing to a comprehensive understanding of the role played by FIIs in shaping India's stock market.
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Raman et al. (2024) studied this question.
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