A Study on Empirical Analysis of Relationship between FPI and NIFTY Returns
Keywords:
Investing Pattern, Stock Market, Foreign Portfolio Investors, Liberal Government, Designated Depository ParticipantsAbstract
The term FPI was defined to align the nomenclature of categorizing investments of foreign investors in line with international practice. FPI stands for those investors who hold a short- term view on the company, in contrast to Foreign Direct Investors (FDI). FPIs generally participate through the stock markets and gets in and out of a particular stock at much faster frequencies. Short term view is associated often with lower stake in companies. Hence, globally FPIs are defined as those who hold less than 10% in a company. In India, the hitherto existing closest possible definition to an FPI was Foreign Institutional Investor.