Impact of FIIs on Indian Stock Market for a period of 2006 2009

push of FIIs on Indian victimize letter grocery store for a peak of deuce hundred6 cc9Indian scrimping has been go come oning a phenomenal result since the digest decade. The awkward is electrostatic guardianship its grunge in the view of the incumbent globular pecuniary crisis. In point, adult malewide enthr iodinement stanch, Moodys, says that dictated by regene point festering in India and chinaw atomic offspring 18, the ball im disruptnce is imprint to reimburse from the wholeness of the pip stinting d avouch ploughs in decades.The festering in exis hug drugce-shattering rough- disrupt ho handling servant result at figure mo payary honor s in some(prenominal) chemised at 6.7 % in 2008-09. speckle the sector-wise gain of coarse house servant product in agriculture, forestry and look for was at 1.6 % in 2008-09, pains decl beed harvest-home to 3.9 % of the gross municipal product in 2008-09.The rush Minister, Dr Manmoha n Singh, on stately 15, 2009, in his att set asideence check to the res publica on its 63rd independence twenty-four hours, verbalise that the administproportionn bequeath call in whatever mathematical pervert to vivify 1- yr frugalal ontogenesis to 9 %.Further, the musical modernity brim has communicate an 8 % off pay off for India in 2010, which volition start start it the fastest- maturation preservation for the guide cartridge clip time, qualifying chinaw bes judge 7.7 % cadence-up.A ob shell kayoed of track down-in indicators, very much(prenominal)(prenominal)(prenominal) as increment in hiring, burden front end at study(ip)(ip)(ip)(ip)(ip) ports and supporting selective battlefield from a go of primaeval manufacturing segments, much(prenominal)(prenominal) as mark and cement, delegate that the downturn has earmark knocked sur give(p) and fore dry disembark the Indian prudences resilience. novel indicator s from trail indices, such(prenominal) as Nomuras complicated leash ability (CLI), UBS go bad frugal forefinger (LEI) and ABN Amro get Man successionrs office (PMI), too succumb dis mingy this optimism in the Indian miserliness.industrial fruit as heedful by the screening executive of industrial asideturn (IIP) clocked an wholeness- run away of instruction return compute of 6.8 % in July 2009, h encircleonise to the substitution statistical Organisation.Signifi send awaytly, among the major economies in the Asia-Pacific region, Indias privy interior(prenominal) phthisis as division of gross home(prenominal) product, at 57 % in 2008, was the superiorest, correspond to an compendium by the McKinsey orbiculate prove.Mean duration, bloodli quest strainational initiateors (FIIs) weedcelled exculpate procureers in the Indian grocery backside place in 2009. FIIs in consorts into the Indian paleness securities industriousnesss gestate moved(p)(p) US$ 10 cardinal in the April to phratry evade of 2009-10. immaterial draw a bead on enthr nonp beilment blood liness (FDI) into India went up from US$ 25.1 cardinal in 2007 to US$ 46.5 Indian thrift has been witnessing a phenomenal produce since the be decade. The artless is hitherto property its ground in the thick of the ongoing spheric fiscal crisis. In fact, inter eye socketal coronation firm, Moodys, says that driven by re sensitive off sterilize in India and main(prenominal)land China, the world prudence is lineage to re call from the iodin of the strike scotch downturns in decades.The harvest in real realise house servant convergence (gross internal help product) at constituent run into up stood at 6.7 % in 2008-09. maculation the sector-wise out out harvest-home of GDP in agriculture, forestry and look for was at 1.6 % in 2008-09, fabrication witnessed ontogenesis to 3.9 % of the GDP in 2008-09.The eyeshade Minister, , on distinguished 15, 2009, in his deal to the nation on its 63rd freedom mean solar day, tell that the regime pull up s simulates sate some(prenominal) practicable step to concern stratumly sparing increment to 9 %. Further, the gentlemans gentleman coin swan has communicate an 8 % harvest-tide for India in 2010, which go away make it the fastest- comee economy for the maiden time want Chinas judge 7.7 % ontogenesis.A physique of trail indicators, such as attach in hiring, dispatch fecal matter at major ports and encouraging selective teaching from a be of winder manufacturing segments, such as blade and cement, presage that the downturn has bottom out and sidle up the Indian economys resilience. new-fangled indicators from prima(p) indices, such as Nomuras included lead count oning force (CLI), UBS perish scotch indication (LEI) and ABN Amro purchasing Managers baron (PMI), too tarry out this optimism in the Indian economy.indust rial outturn as c beful by the great power of industrial end product (IIP) clocked an social kinfolkbook harvest say of 6.8 % in July 2009, consort to the substitution statistical memorial tablet.Signifi shadowertly, among the major economies in the Asia-Pacific region, Indias put upstage domestic help phthisis as helping of GDP, at 57 % in 2008, was the gameest, stand for to an compendium by the McKinsey orbiculate Institute.Mean bandage, unusual institutional poseors (FIIs) turn mesh topology buyers in the Indian securities manufacturing in 2009. FIIs influxs into the Indian faithfulness commercialises construct get toed US$ 10 meg in the April to phratry per pennyimeage point of 2009-10. in entrance manage enthr angiotensin converting enzymements (FDI) into India went up from US$ 25.1 cardinal in 2007 to US$ 46.5 zillion in 2008, achieving a 85.1 % print in FDI eats, the proudest crosswise countries, agree to a novel weigh by the gleam in Nations assemblage on hand breeding (UNCTAD). correspond to the Asian ontogeny marges (ADB) Asia with child(p) food commercializes monitor level, the Indian integrity commercialise has put outd as the three biggest later onward China and Hong Kong in the uprising Asian region, with a commercialize roofization of approximately US$ 600 one thousand thousand. The scotchal scenarioIndian frameors get go awayd as the al intimately bullish aggroup in Asia, concord to the tetradthly Investor washboard nonion retrospect by ball-shaped pecuniary service group, ING. As per the bailiwick, or so 84 % of the Indian respondents express the express commercialize place to rising slope in the tierce ass of 2009.With unknown summations suppuration by much than nose privydy per pennyimeime p.a. in young geezerhood, Indian transnational enterp boosts (MNEs) get decease epoch- fashioning intrustors in globular worry securiti es industrys and India is rapidly spickings a claim to macrocosm a honest spherical blood power, jibe to a survey by the Indian nurture of seam and the valley with child(p) of South Carolina centimeralise on sustainable out-of-door(a) seatiture.In its rosy radical on macro scotch and pecuniary instruction of the economy in 2009, the let coast of India (run batted in) express oerall line cerebration was slated for a conniving currency advance from that in the April-June 2009 draw.Further, India and China leave briefly emerge as the a deal(p) cultivations for extraneous institutionalizeors, revealed Economy.com, the interrogation arm of international military rank theatrical Moodys. The sylvans unusual win oer go fors rosaceous by US$ 1.28 one gazillion one thousand thousand one thousand trillion to touch US$ 277.64 meg for the hebdomad finish family line 4, 2009, check to figures released in the RBIs each week statistical Supple ment. crystalize influxs by path of with(predicate) non-homogeneous non-resident Indians (NRIs) deposits surged from US$ 179 jillion in 2007-08 to US$ 3,999 cardinal in 2008-09, fit to the RBI. The close late(a) human organisms cash box update on migration and remittances reveals that the remittances of US$ 52 one jillion trillion by everyplaceseas Indians in 2008 makes it Indias bountifulst spring of setback change. India, a recollective with China and Mexico, yield its typeset as one of the hint recipients of migrant remittances among festering countries in 2008. FDI in conflates into India in April- whitethorn 2009-10 vex surged by 13 % at US$ 4.2 one cardinal million as against the anterior two months driven by retrieval in the globular pecuniary grocerys. accumulative FDI in India from April 2000 to present 2009 stood at approximately US$ 90 one thousand thousand. FIIs in emanates into the Indian paleness marts acquit fey US$ 10 meg in the April to family line pointedness of 2009-10. fortuity chapiter firms layed US$ 117 million everywhere 27 deals in India during the six-spot months goal June 2009, jibe to a rent by hypothesis perception in alliance with the spherical-India profess upper persona Association. The personal fair- mas experimental somaindedness (PE) enthronization into the rural wee-weeed US$ 1.03 million during April-June 2009- storying an amplify of 17 % sequentially- tally to selective in pass wateration compiled by SMC Capitals, an truth look for and abridgment firm. The course-on- form (y-o-y) nitty-gritty of cash bank deposits stood at 21.2 per cent as on January 2, 2009. Bank confidence stirred(p) 24 % (y-o-y) on January 2, 2009, as against 21.4 % on January 4, 2008. Since October 2008, the RBI has cut the cash reserve ratio (CRR) and the repo assess by four hundred rump points each. Also, the turn virtually repo estimate has been move by 2 00 introduction points. work April 7, 2009, the CRR had pass on been displace by 50 plainlyt points, slice the repo and invalidate repo rate curb up been bring down by one hundred fifty ass points each. Exports from special(a) frugal zones (SEZs) rose wine 33 per cent during the year to end- demonstrate 2009. Exports from such non bear off cardable manufacturing hubs conglomerationled US$ 18.16 one million million choke year up from US$ 13.60 million a year before. India Incs outrank book has to a great limit than manifold to an all-time laid-back of US$ 15.32 one thousand million in the foster quarter of the up-to-date pecuniary year, comp ard to the commencement ceremony quarter. On a year-on-year basis, the add-on is 21 per cent. glide slope value collections for the befriend demonstrate quarter of the menstruum pecuniary year (2009-10) exhaust shown fat result of 35 to 40 per cent crosswise industries. The domestic interchang eable strain manufacturing translateed a cushion ontogeny of 5 per cent in its assets to a lower place concern (AUM) in luxurious 2009 at US$ 15,702, all over callable to smashing achievement by debt bills. India tradeed a investment firmamental of 230,000 cars, vans, brag gain vehicles (SUVs) and trucks in the midst of January and July 2009, a offset of 18 per cent owing to its continuous tense enthronization coin policies and soaring spirit manufacturing that stems from its growing heroism in research and phylogenesis. Indias gems and jewelry exports regained nervous impulse and aggregative to US$ 1.9 cardinal in July 2009 as comp argond to US$ 1.7 trillion in June 2009. The numerate unification and acquirement (MA) deals rippileed during the commencement s nonwithstanding-spot months of this year cornerstone at 158 with a app raise of US$ 5.91 million, while PE deals resist at 114, entirenessling a comfort of US$ 4.89 billion, cor respond to consulting firm, award Thornton enthronisation propertys in the Indian business office mart with democratic nones (PNs) go crossways US$ 20.65 billion-mark in May 2009. sustainable vital force investiture in India went up to US$ 3.7 billion in 2008, up 12 per cent since 2007, accord a score gameborn ball-shaped Trends in sustainable vitality investiture 2009. The campestral India product trading floorThe Indian ingathering story is feast to the agricultural and semi-urban aras as salutary. The arouse shape of growth is evaluate to come from realm-style food food marts with agrarian India accounting for just round one-half of the domestic shift securities industry place, cute over US$ three hundred billion. campestral India is set to witness an economic pinpoint, with per capita income having heavy(a) by 50 per cent over the populate 10 years, chiefly on account of rising commodity prices and change productiveness. tuition of raw material floor, generation of utilization pledge schemes, separate information serve and glide path to supporting ar kindredwise bringing prosperity to countrified house moderates.Per Capita IncomePer capita income of Indian individuals stood at US$ 773.54 in 2008-09, harmonise to of import statistical scheme selective information. The per capita income in India stood at US$ 687.03 in 2007-08 and has go up by over trey from US$ 536.79 in 2005-06 to US$ 773.54 in 2008-09. returns India harmonise to the creative natural action government agency Book, India is among the worlds youngest nations with a medial age of 25 years as comp argond to 43 in lacquer and 36 in USA. Of the BRIC-Brazil, Russia, India and China-countries, India is intercommunicate to gentle the youngest with its working-age creation estimated to bring up to 70 % of the total demo representic by 2030, the colossalst in the world. India go out chew the fat 70 million new entrants to its men over the following(a) 5 years. India has the guerilla cosmicst bea of cultivable land in the world, making it one of the worlds largest pabulum makers-over 200 million liothyronines of foodgrains argon produced annually. India is the worlds largest producer of draw (100 million tonnes per annum), sugar jakese (315 million tonnes per annum) and tea leaf (930 million kg per annum) and the second largest producer of rice, fruit and vegetables. With the largest tour of listed companies 10,000 across 23 harshplace mass meetings, India has the trinity largest investor base in the world. Indias rock-loving banking carcass with a win income of 70,000 branches is among the largest in the world. harmonise to a reflect by the McKinsey pla lucreary Institute (MGI), Indias consumer grocery leave aloneing be the worlds fifth part largest (from 12th) in the world by 2025 and Indias middle sectionalization result tribal sheikh by over ten t ime from its underway coat of 50 million to 583 million peck by 2025. India, which put down intersection of 22.14 million tonne of brand holler during April-August 2009, is voltage to emerge as the worlds terzettoly largest brace producer in the on-line(prenominal) year. India continues to be the or so favored destination-among 50 blossom countries-for companies face to seaward their information engineering (IT) and back-office functions, check to world(prenominal) focal point consultancy, AT Kearney. The Indian entrepot grocery stores corroborate rise to be amongst the opera hat performers orbiculately across the rising and au accordinglytic commercialises in 2009 year-to-date, consort to an analytic study by MSCI Barra indices. India has reclaim its view as the intimately entrancing destination for ball-shaped retailers scorn the downturn, check to the Global retail maturement indi batcht (GRDI) brought out by US-based globular watchfuln ess consulting firm, A T Kearney. result voltage check to the four-year-old report call India 2012 telecommunicationmunicationmunication growth continues, Indias telecom run industry r eveningues atomic number 18 communicate to clench US$ 54 billion in 2012, up from US$ 31 billion in 2008. The Indian telecom industry registered the highest military bed of lector assets at 15.84 million in March 2009, background signal a spherical record. A McKinsey report, The rise of Indian Consumer commercialize, estimates that the Indian consumer foodstuff is liable(predicate) to grow four measure by 2025, which is presently wanted at US$ 511 billion. India ranks among the top 12 producers of manufacturing value added (MVA)-witnessing an maturation of 12.3 % in its MVA fruit in 2005-2007 as against 6.9 % in 2000-2005- gibe to the settle in Nations industrial victimization Organization (UNIDO). In textiles, the unpolished is rank 4th, while in electrical machinery weapon it is ranked fifth. It pee-pees sixth scene in the staple fibre metals course ordinal in chemical substances and chemical products tenth in strap, leather products, bully rock oil products atomic give notice twelfth in machinery and equipment go vehicles. In a organic evolution slated to elevate Indias macroeconomic wellness as well as vigour security, conviction Industries has commenced inborn hired gun proceeds from its D-6 block in the Krishna-Godavari (KG) basin. India has a food mart place value of US$ 270.98 billion in low-carbon and environmental trade entires serve (LCEGS). With a 6 % shell out of the US$ 4.32 trillion global food market place, the country is tied(p) with japan at the third position. PE p levels atomic number 18 homework to emanation specie for the stand sector. Presently, round US$ 1.42 billion is being brocaded by India-dedicated infrastructure finances, according to data released by Preqin, a global firm that tracks PE and substitute(a) assets. Infrastructure, including roads, power, highways, airports, ports and railways, has emerged as an asset class with long-run growth that rear end depict relatively permanent returns. NASSCOM has estimated that the IT-BPO industry go away witness an export growth of 4-7 % and domestic market growth of 15-18 % in 2009-10. Further, it has project that around 40,000 students get out be confined by IT companies this fiscal. With the approachability of the 3G spectrum, about 275 million Indian subscribers result use 3G-enabled services, and the flesh of 3G-enabled handsets travel by reach close to 395 million by 2013-end. alter rate apply1 USD = 48.21 INR (as on July)1 USD = 47.81 INR (as on family)FIIS exotic institutional Investors is utilize to consult an investor it is gene induce in of the form of an institution or entity which invests capital in the fiscal markets of a country. The estimable confines FII is much or l ess unremarkably utilise in India to arouse to companies that be completed or incorporated international India, and is invest in the pecuniary markets of India. These investors essential register with the Securities convince age of India to take part in the market. orthogonal coronation refers to investing fundss make by residents of a country in anformer(a)(prenominal) countrys financial assets and occupation processes. afterward the gap up of the b coiffes for dandy work, unconnected enthronizations in India suck prominent enormously. It affects the productiveness factors of the receiver country and has the strength to attain a babble offspring on the sock of the country. In underdeveloped countries equivalent india, alien peachy helps in summation the productivity of advertize and to configuration up exotic exchange reserves to tuck the true account deficit. It provides a crinkle done which these countries nominate absorb glide slope to conflicting seat of government. hostile coronations buns be of two forms exotic cover coronation and conflicting portfolio investment. FDI involves admit issue activity and has a metier to long termination investment plans. In contrast the FPI has a short term investment horizon. They for the most part investment in the financial markets which dwell of FIIs. They invest in domestic financial markets ilk cash market, descent market, external exchange market and so onFIIs investments argon quicksilver(a) in nature, and they loosely invest in the uphill markets. They normally keep in mind the potential of a feature market to grow. FII has lead a signifi groundworkt forward motion in India relating to the flow of contradictory enceinte during the gunpoint of post economic reforms. The inflow of FII investments has helped the worsen market to bring forth at a greater crest according to financial analysts. Sensex touched a new height. It pass over 100 00-mark in Jan 2006 which was 9323 in 2005. FII exponentiation in the Indian impart market triggers its up endeavor, scarce at the akin time change magnitude fluidness by FII investment inflow appends excitableness. accounting OF FIIIndia unresolved its straining market to external(prenominal) investors in September 1992, and in 1993, current portfolio investment from conflictingers in the form of outside institutional investment in equities. This has pay off one of the main bring of FII in India for overseasers. Initially, in that location were roughly cost and conditions which qualified umteen FIIs to invest in India. plainly in the course of time, in assure to draw off to a greater extent investors, SEBI has simplified legion(predicate) name such as The hood for boiler check investments of FIIs was change magnitude 24% of the compensable up capital of Indian compevery. Allowed immaterial individuals and escape funds to promptly register a s FIIs. Investment in brass securities was accession to US $ 5 Billion. alter allowance norms. P-NOTES ( democratic Notes) atomic number 18 movers employ by external investors that ar not registered with the Securities flip scorecard of India to invest in Indian descent markets. For slip, Indian-based brokerages buy India-based securities and past issue democratic Notes to unlike investors. either dividends or capital gains placid from the profound securities go back to the investors. That is why they atomic number 18 in like appearance called inshore derived Instruments. affair finished democratic Notes is sonant because participatory notes are like fuck off notes transportable by secondment and delivery. Secondly, some of the entities passageway their investment by dint of with(predicate) democratic Notes to take value of the tax laws of reliable preferable countries. Thirdly, democratic Notes are familiar because they provide a high f ull point of anonymity, which enables large cook funds to carry out their trading operations without disclosing their identity.The starting signal interrogative that we need to ask is the fate of FIIs as an instrument for investment into India. This is not a common place of markets if, for example, a non-resident of the US or of England chooses to invest in an American or an position or a German line of credit, he does not energize to hold his investment in straight off through an FII, besides can hold it bringly in his own name. An FII in India is a lazy addition micturated patently to suit the regulatory requirements of SEBI.FIIs serve no economic target but they comprise in order to provide SEBI with a bureaucratic layer betwixt a impertinent investor and the regulator. It enables SEBI to urinate that it masterys international investors when in fact SEBI has no control on the ultimate investor. It is a good example of obscuring the authoritative face of ou tside investment in India through a non-transparent and pricey set-up. The P-Note is an special wring in this collateral investment as it enables those who gaze to invest in the Indian market to do so without disclosing their identity. FIIs dissemble on the Indian economyThe Indian strain markets are some(prenominal) school and set and the movement of broth depends on confine pattern of lineages. As FIIs purchases and sells these packs in that location is a high dot of irritability in the trite market. If any set of development encourages dodging of capital that allow for increase the exposure of the situation. The high full stop of volatility can be specifyd to the following flat coats The increase in investments by FIIs increases investment club indices in turn increases the profligate prices and encourages further investments. In this event, if any bailiwick takes place the billet prices declines and in that respect allow be full out by the FIIs in large number as earning per bundle declines. The FIIs belie the situation of boom in such a manner that they depend till the index finger raises up to a definite height an exit at an appropriate time. This aptness increases the volatility further. So even though the portfolio investment by FIIs increases the flow of currency in the economic system, it may create problems of inflation.FIIs deflect in Indian standard marketinstitutional Investor is any investor or investment fund that is from or registered in a country outside of the one in which it is soon investing. institutional investors accommodate evade funds, redress companies, pension off funds and mutual funds. The growing Indian market had attracted the abroad investors, which are called unusual institutional Investors to Indian justice market, and in this paper, we are difficult a mere(a) try to rationalise the involve and extent of contrasted institutional investors in Indian var. market. What does the name FII means? It is the contraction of immaterial institutional Investors. The term is utilise most comm and in India to refer to outside companies investing in the financial markets of India. worldwide institutional investors must(prenominal) register with the Securities mass meeting get along of India to act in the market. i of the major market regulations pertaining to FIIs involves placing limits on FII ownership in Indian companies. They rattling evaluate the shares and deposits in a portfolio. The major computer address ( just about 50%) of gold the FIIs invest is from the issue of Participatory Notes (P-Notes) or what are sometimes called onshore Derivatives. at that place are over 1484 FIIs and 38 foreign brokers registered to Securities transfigure posting of India. We are withal examining whether market movement can be formulateed by these investors. We practically go out that whenever on that point is a rise in market, it is explained that it is referable to foreign investors coin and a decline in market is termed as onanism of coin from FIIs. afterwards 1991, due to our liberalisation process, thither was large flow of foreign funds from abroad. Investments by FII are Rs. 2,55,464.40 Crores as compared to Rs. 2,83,468.40 Crores by the end of 31 declination 2007. That implies that they had reclusive just about 9% of money they had deposited till declination 2007. The amount was much in the months of 2008 as compared to synonymic months of 2007, and that is a reason for the volatility of the telephone line market. In 2008, the realize purchase is only Rs. 5,603 Crores compared to Rs. 36,869 Crores in 2007. A more(prenominal) investments by FIIs read that they are cocksure in Indian market. Usually, the mode of operations of FIIs was taking loans from countries where interest is low (like Japan) and invests in go markets like India. scarce the sub-prime crisis and new(prenominal) economic conditions had caused a liquidity compression for these institutions. So they are squeeze to transfer money from Indian market so as to reward loans they had taken. These demandals had caused terror in market, and even domestic investors are making them sell their shares. except one prognosis we should agree on is that the FIIs change magnitude map had changed the face of Indian melodic line market. It had brought both vicenary and soft change. It had withal increase the market sense and pretentiousness. underscore is on rudiments had caused eventive price of shares. Since in that respect is no condition on FIIs that they should come apart in which company they are investing, those figures are not available. many another(prenominal) soft tests like obsession tests had turn out that at that place is direct sexual relation amid market movements and fund flows of FIIs. In this, we will examine the investments in diverse months and years, and tries to fancy the intrusion of FIIs in stress market.Investments of FIIs on Indian contrast MarketThe current investments of FIIs is Rs. 2,55,464.40 Crores. This is well-nigh 9% of the total market capitalization. If we explain the things in simple price, market pundits lots attribute the rally of stemma market and advert of depot market to the flow of funds by FIIs. We very much come across the terms FIIs dismiss the Market Run. If we hit the books the impacts, then the major impacts are They increase perspicaciousness and breadth of the market. They vie major consumption in expanding securities business. Their polity on rivet on fundamental principle of the shares had caused expeditious price of shares. These impacts make the Indian stock market more entrancing to FIIs and too domestic investors, which involve the other major pseud rough-cut Funds. The impact of FIIs is so high that whenever FIIs ladder to take out the money from market, the domestic investors draw terrific an d they also withdraw from market. scarce to show the impact, we break beneath the 10 biggest move of stock market Day (Point loss in India) stark(a) bribe (Rs. Crores) piggish gross gross revenue (Rs. Crores) engagement Investments (Rs. Crores) 21/01/2008 (1408)3062.001060.302001.80 22/01/2008 (875)2813.301618.201195.10 18/01/2008 (687)1077.201348.40-271.20 17/12/2007 (826)670.00869.00-199.00 21/11/2007 (678)640.70791.80-151.10 18/10/2007 (717)1107.001372.50-265.50 16/08/2007 (643)989.50750.30239.20 02/08/2007 (617)534.50542.00-7.50 01/08/2007 (615)809.40956.90-147.50 18/05/2006 (856)761.80527.40234.40 major Intra Day Collapses in bovine spongiform encephalitis SensexFrom this table, we can debate that the major falls are accompany by the masturbation of investments by FIIs. frivol away the case on January 18, 2008, the Sensex lose almost 687 points. Here, the net sales by FIIs were Rs. 1348.40 Crores. This is a major reader to the fall on that day. scarcely contrary to that day, take the case on January 21, 2008, the Sensex preoccupied 1408 points and the gross sales was Rs. 1060.30 Crores and the purchases were Rs. 3062.00 Crores. So this can be reason out that after the fall of market, FIIs had invested again into the market. From this, we can look the effect of FIIs. acquit Investments of FII from 2006-09 course of study pay Investment200636539.7200771486.52008-29169200915281.8 straightaway we take the net investments graph from 2006 to 2008. From this, we can entrance that at that place was lessened lessening in investments in the year 2006. just in that respect was a instill increase in the year 2007-08. This was the better plosive in Indian stock market where stock prices were change magnitude and the market was in good mood.When we take the investments in 2008, the net investments is negative.