FOREIGN INSTITUTIONAL INVESTORS TRENDS EFFECTS ON INDIAN MARKET

AT INTER CONNECTED STOCK EXCHANGE INDIA.Ltd By A.THIRUPATHI REDDY H.T. NO. 018-07-219
PROJECT SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION Osmania University, Hyderabad-500007

AURORAS RESEARCH & MANAGEMENT INSTITUTE (Formerly Auroras P.G College) Parvathapur, RangaReddy (DIST) Pin: 500 039 Affiliated to Osmania University. Hyderabad, A.P 2007-2009

DECLARATION

hereby

declare

that

this

Project

Report

titled

FOREIGN

INSTITUTIONAL INVESTORS TRENDS EFFECTS ON INDIAN MARKET in relation to Inter connected Stock Exchange India.Ltd submitted by
me to the Department of Business Management, O.U., Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before.

NAME & ADDRESS OF THE STUDENT A.THIRUPATHI H.No: 3-63, Lingam pet (Village), Medipally (Mandal), Karimnagar (District), A.P.

SIGNATURE OF THE STUDENT

(A.THIRUPATHI)

Aurora Management and Research Institute (Formerly Auroras P.G College) e) Parvathapur, Ghatkesar Mandal, R.R District-500039.

CERTIFICATE

This is to certify that the project entitled FOREIGN INSTITUTIONAL INVESTORS TRENDS EFFECTS ON INDIAN MARKET submitted in partial fulfillment for the award of MBA programme of Department of Business Management, Aurora Management and Research Institute, Parvathapur Affiliated to Osmania University Hyderabad was carried out by A.THIRUPATHI, H.T No 018-07-219 under our guidance. This has not been submitted to any other University or institution for the award of any degree, diploma certificate.

Internal Guide (G.N.SATISH KUMAR)

HOD

Principal

ACKNOWLEDGEMENT

With the deep sense of gratitude, I wish to acknowledge the support and help extended by all the people, in successful completion of this project work.

I express my sincere gratitude to Mr.P.J.MATHEW, Managing Director of INTER CONNECTED STOCK EXCHANGE OF INDIA.Ltd for allowing me to take up this project and enlightened me in doing this project.

I am also thankful to all the staff members of INTER CONNECTED STOCK EXCHANGE OF INDIA.Ltd who were readily willing to help me out in the course of the project.

I express my gratitude to our Principal Sir for his consistent support, Head of the Department and my guide Mr.G.N.SATISH KUMAR for his encouragement.

I would like to express my sincere thanks to my project coordinator Mrs. Ratnavali for their immense support during my project report,

Last but not the least; I would like to thank all the faculty members who have been a strong source of inspiration through out the project directly or indirectly.

(A.THIRUPATHI)

ABSTRACT

Foreign institutional investors in Indian market have a significant role, with large volume of trade and with global operations these foreign institutional investors dominant in the market. In Indian foreign institutional investors have grown to such an extent that these can influence the market direction.

Stock markets have important role in economy building. Markets represent invest of varied business communities of different spectrum of society markets bubble and burst in a specified period depending on various market variable. One of such variables is foreign institutional investors.

This study tries to find out the effect of foreign institutional investors over Indian markets. BSE sensex and NSE nifty indices are taken for the study as these indices are benchmark indices for other stock markets in our country and majority of foreign institutional investors are in BSE followed by NSE. Monthly trading volume of foreign institutional investors is interpreted for better understanding.

CONTENTS
CONTENTS LIST OF TABLES LIST OF GRAPHS Chapter No.1. 1.1 INTRODUCTION 1.2 OBJECTIVES OF THE STUDY 1.3 NEED FOR THE STUDY 1.4 SCOPE OF THE STUDY 1.5 RESEARCH METHODOLOGY Chapter No.2. 2.1 REVIEW OF LITERATURE 2.2 THEORETICAL FRAMEWORK Chapter No.3. 3.1 THE INDUSTRY PROFILE 3.2 THE COMPANY PROFILE Chapter No.4. 4.1 DATA ANALYSIS & INTERPRETATION Chapter No.5. 5.1 FINDINGS 5.2 LIMITATIONS 5.3 CONCLUSIONS 5.4 SUGGESTIONS BIBLIOGRAPHY 65-65 66-66 67-67 68-68 69-69 38-64 29-32 33-37 7-9 10-28 1-6 5-5 6-6 6-6 6-6 PAGE NUMBERS i ii

LIST OF TABLES
SL. No. TAB No. Page No.

TITLE OF TABLE

1. 2. 3. 4. 5. 6. 7. 8. 9.

FII Activity in the month of Nov-2005 FII Activity in the month of Dec-2005 FII Activity in the month of Nov-2006 FII Activity in the month of Dec-2006 FII Activity in the month of Jan-2007 FII Activity in the month of Feb-2007 FII Activity in the month of Mar-2007 FII Activity in the month of Jan-2008 FII Activity in the month of Feb-2008

1 2 3 4 5 6 7 8 9

38 41 44 47 50 53 56 59 62

LIST OF GRAPHS
SL. No. FIG No. Page No.

TITLE OF GRAPH

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

FII Purchases in the month of Nov-2005 FII Sale in the month of Nov-2005 FII Purchases in the month of Dec-2005 FII Sale in the month of Dec-2005 FII Purchases in the month of Nov-2006 FII Sale in the month of Nov-2006 FII Purchases in the month of Dec-2006 FII Sale in the month of Dec-2006 FII Purchases in the month of Jan-2007 FII Sale in the month of Jan-2007 FII Purchases in the month of Feb-2007 FII Sale in the month of Feb-2007 FII Purchases in the month of Mar-2007 FII Sale in the month of Mar-2007 FII Purchases in the month of Jan-2008 FII Sale in the month of Jan-2008 FII Purchases in the month of Feb-2008 FII Sale in the month of Feb-2008

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

39 40 42 43 45 46 48 49 51 52 54 55 57 58 60 61 63 64

ii

CHAPTER-1
INTRODUCTION

CHAPTER-2 REVIEW OF LITERATURE

CHAPTER-3
COMPANY PROFILE

CHAPTER 4
DATA ANALYSIS & INTERPRETATION

CHAPTER-5
SUMMARY & CONCLUSIONS

Bibliography