Question

How foreign portfolio investment affect indian stock market?

Answer 1

Heya....

Foreign portfolio investment also refer to foreign direct investment ....
It is the investment in our country made by foreigners in terms of direct business set up and direct profit control...

It effect to Indian stock market...

"" It increase the number of firms...

"" It gets international coverage of stocks...

"" Stocks gets influences widely...

-- Be Brainly....

Answer 2

Abstract The objective of this study is to examine the impact of Foreign Portfolio Investment on India’s economy and industry. As FPI essentially interacts with the real economy via the stock market, the effect of stock market on the country’s economic development will also be examined. The findings ofthis paper show that the perceived benefits of foreign portfolio investment have not been realized in India. From the results of this study it can be said that the mainstream argument that the entry of foreign portfolio investors will boost a country's stock market and consequently the economy, does not seem be working in India. The influx of FIIs has indeed influenced the secondary market segment of the Indian stock market. But the supposed linkage effects with the real economy have not worked in the way the mainstream model predicts. Instead there has been an increased uncertainty and skepticism about the stock market in this country. On the other hand, the surge in foreign portfolio investment in the Indian economy has introduced

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