Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/189629 
Authors: 
Year of Publication: 
2003
Series/Report no.: 
Working Paper No. 109
Publisher: 
Indian Council for Research on International Economic Relations (ICRIER), New Delhi
Abstract: 
The Foreign Institutional Investors (FIIs) have emerged as important players in the Indianequity market in the recent past. This paper makes an attempt to develop anunderstanding of the dynamics of the trading behavior of FIIs and returns in the Indianequity market by analyzing daily and monthly data. From our analysis we find that thereis strong evidence of FIIs chasing trends and adopting positive feedback trading strategiesat the aggregate level on a daily basis. However there is no evidence of positive feedbacktrading on a monthly basis. The results of our analysis also indicate that foreign investorshave a tendency to herd together in their trading activity in India. The trading behaviorand biases of the FIIs do not appear to have a destabilizing impact on the equity market
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.