Ananthanarayanan, Sandhya and Krishnamurti, Chandrasekhar and Sen, Nilanjan (2009) Foreign institutional investors and security returns: evidence from Indian stock exchanges. In: 7th INFINITI Conference on International Finance 2009 - Credit Markets, Credit Institutions and Macroeconomic Volatility, 8-9 Jun 2009, Dublin, Ireland.
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Abstract
India liberalized its financial markets by opening its doors to foreign institutional investors in September, 1992. We study this landmark event, by examining the impact of trading of Foreign Institutional Investors on the major stock indices of India. First, we find that unexpected flows have a greater impact than expected flows on stock indices. Second, we find strong evidence consistent with the base-broadening hypothesis. Third, we do not find any evidence that foreign institutional investors employ either momentum or contrarian strategies. Fourth, our findings support the price pressure hypothesis. Finally, the claim that foreigners’ destabilize the market is not substantiated. Keywords:
| Item Type: | Conference or Workshop Item (Commonwealth Reporting Category E) (Paper) |
|---|---|
| Additional Information: | No evidence of copyright restrictions. |
| Uncontrolled Keywords: | foreign institutional investors, momentum and contrarian strategies, market destabilization |
| Fields of Research (FOR2008): | 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150201 Finance |
| Subjects: | UNSPECIFIED |
| Socio-Economic Objective (SEO2008): | B Ecomonic Development > 90 Commercial Services and Tourism > 9001 Financial Services > 900101 Finance Services |
| ID Code: | 6799 |
| Deposited By: | |
| Deposited On: | 31 Jul 2010 23:02 |
| Last Modified: | 07 Dec 2010 08:21 |
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