Strategy of FIIs to Invest in Indian Stock Market

Today, this fact is not hidden from Indian investors that FIIs affect the Indian stock market. FIIs can affect stock exchange when they withdraw all their money from Indian stock market, at that time, value of shares go down and Indian Investors' share capital value decreases fastly.

On the other side when foreign investors invest money in specific company, share prices go up. So, Indian investors get benefit from this. So, keep eye on the strategy of FIIs.

To understand the strategy of FIIs to invest in Indian stock market is very necessary to small Investors of India. For this, we have to understand following things.

1. In which Companies FIIs Invest their Money

Mostly FIIs have invested money in following companies.

Axis Bank
M& M
Tata Power company
Sun Pharma

2. Strategy of Ceiling on FII investment in Indian Companies 

RBI has fixed the limit of FII's investment. FIIs can not invest more than 24% of the paid up capital of Indian company. NRIs can not invest the 10% paid up of the Indian company. But some Indian companies has obtained the exception from this ceiling limit. Indian investors should understand, FIIs can Invest 49% to 62% of the paid up capital in some private companies in India. RBI has issued its notification and as Indian Investor, you should study at here.

Except checking above, Indian Investors should understand FIIs are also human being like you and me. If they will feel the risk of their investment, they will withdraw their money. So, investment strategy of FIIs is dependent on the performance of company, market value of its shares, Indian economic stability and Indian political stability. For example, recently, FIIs has invested $ 2 billion in Govt. debt for this year only because in 2014, election will be start and there is the chance of coming other parties and there may be new laws come into existence. So, FIIs do not want to invest long run in Indian Govt. debt.

One of point which I want to mention in the end, FIIs can also withdraw the money if their countries start to give high return on their return with security of their investment.

Related : FII and its Role in Capital Market






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: Strategy of FIIs to Invest in Indian Stock Market
Strategy of FIIs to Invest in Indian Stock Market
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock