Skip to main content

FII AND INDIAN STOCK MARKET

By
In fact, Foreign Institutional Investor ( FII)  is allowed to enter into INDIA only through stock markets either in the form of equity of debt.  Thus it makes an impact on the rise or fall of Sensex or nifty, since FII is allowed to be purchased or sold daily.  The daily transaction of FII is the reason behind the volatility in the stock markets and has strong impact on the various macro-economic variables and the economy as a whole.  The impact of variation in inward or outward flow of FII can be simply exhibited in NIFTY LIVE behavior pattern.  The impact of FII can be best interpreted by explaining the recent behavior of market.  The second half of NIFTY FUTURE February series showed a well deserved consolidation after a long BULL-MARKET.  However, NIFTY FUTURE March series ended up with SENSEX slipping below psychological mark of 18000.  These all epitomizes the immense impact of FII flow in the Indian Stock Market.  Intraday traders do take care of FII activity meticulously. 
FII—THE BASICS
Most of the under developed countries suffer from low level of income and capital accumulation.  Though, despite this shortage of investment, these countries have developed a strong urge for industrialization and economic development.  As we know the need for Foreign Capital arises due to shortage from domestic side and other reasons.  Indian economy has experienced the problem of capital in many instances.  While planning to start the steel companies under government control, due to shortage of resources it has taken the aid of foreign countries.  Likewise India has received aid from Russia, Britain and Germany for establishing Bhilai, Rourkela and Durgapur steel plants.  It has been observed that the FIIs investment has shown significant improvement in the liquidity of stock prices of both BSE and NSE.  However, it is believed that there exists a high degree of positive correlation between FIIs.
Visit Us : www.technotrades.biz
Contact No. +91-9958406102

Comments

Post a Comment

Popular posts from this blog

By
Post a Comment
Read more

The Buzz on Forex Mt4 Strategies

By
The Facts About Forex Mt4 Indicators Revealed Scalping has come to be one of one of the most prominent forex strategies. The idea behind scalping is to open and close trading settings quickly, making a little profit at the same time. By "swiftly" we suggest a duration of time that is generally numerous minutes in duration, in some cases even a number of secs; by "a tiny revenue", a profit of 1-5 pips. Examine This Report about Forex Exit Indicators Mt4 Since scalping traders do not maintain employment opportunities for long, they are not as exposed to market volatility or swings as various other forex investors. Our forex scalpers are based upon an one-of-a-kind trading technique. Our foreign exchange scalpers were forward-tested in genuine or demo accounts. Our major foreign exchange scalpers come furnished with a GMT auto-determination component, which permits these scalpers to be made use of by any broker without further adjustments/modific...
Post a Comment
Read more

TRADE EXIT STARTEGY IN DAY TRADING

By
My Exit Beliefs In part one of this article, we considered a few questions: Should we use a tight stop loss to cut any losses quickly, or a wide stop loss to allow some room to move? How quickly should we move the stop loss to breakeven ? Should we take profits at a target, or should we let the profits run, perhaps trailing a stop behind the price? In attempting to answer these questions we looked at a number of charts, we chose entry criteria, and then looked at possible options for the exit. And this is what we discovered: Firstly, in each case, the profit or loss taken out of the trade was more a result of our chosen stop and exit method, not our entry. For the same entry, there were numerous possible exits, some profitable, some breakeven and some at a loss. And secondly, we cannot know, except with hindsight, what will be the most profitable exit strategy for that particular trade. In other words - the exit is more important than the entry. The exit has more bearing on w...
Post a Comment
Read more