FII Flows and Indian Stock Market Returns

An Expert's View about Foreign Direct Investment in India

Posted on: 20 Jul 2010

Relationship between FII flows and Indian stock market returns - whether FII flows cause or are affected by stock returns

For eign R Ientsutrintust i?o nAa Cl Ianuvsees tamnedn Et fFfelocwt Rs ealnadti oInndsihainp SSttoucdky Market DDR e.U p TnaANUPA B Cy irvStmeernseior LHecAtKuRreAr BORTY intyt OOff Commerce Calcutta A D D R E S S : 2F3LA, TC ENNOT.R ?A 1L 2R O A D PHONE: (R) 2412-4973 JADAVPUR E-MAI L : t a n u p a c h a (kMra) b9o8r3ty0@1g7m5653 KINODLIKAA TA ? 700 032 ail.com tanupa_cu@hotmail.com A TJuhcniksen 35 2roe0ws0el7ae,rd cpghpe m.p aepn-e4tr 8 i. s originally published in ?Indian Accounting Review?, Vol. 11, No. 1, pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Fo e r R ign Ientsutrintust i?o nAa Cl Ianuvsees tamnedn Et fFfelocwt Rs ealnadti oInndsihainp SSttouck Market tdaopu pee merging gmna Irnksetti teuctoionnoaml iIensv Abst r dy Forei act e(EstMmEenst) (hFaIvI)e frlioswens ,s ih.ea.r,p clyap oitvael rf ltohwe sp aasctr oosnse n aantido nhaall fb doerdceards, retoh egnlsoiobna lirzeagtaiordni nagn dth eIn vdoiala tiisl en noa teuxrcee opft iosunc hin f ltohwiss rtehgearrd. However, there is a lot oef nbeyed to encourage FII flows in a narrow and s eby raising questions about the domTehsteirce satroec kc omnfalrickteitng theories on the ihssaulleo wof swtohcekt hmera rFkIeIt flliokwe sth aaftf oecf tI nodr iaar. e affected throw some l returns. So, the present empirical study has been undertaken to returns using digahtat oonn btohteh dthiree cvtaiorina bolef sc faruosmal iotvye br ethtwe epeenr ioFdII A fploriwl s1 9a9n7d- MInadrican stock market h 2005. IaFnciemnno v vr estmIenntte r(nFaItIi)o nflaolw I. INTRODUCTION ps,o rrteffoelri ot of lcoawpist,a l afsl owarse commonly known as Foreign Institutional roesigs nn atDional borders with a view to creating mana dien tebryn aintidoinvaidlluya dl iavnedrs iifnisetdit uptoirotnfoalli oin. vUenstloikres atenersaptgmreimseene tn irreaeimct edI navte sotbmtaeinnti ng(F aD Il)a stfilnogw isn twerheisct hb yr eaf erre stiod entht aetn tcitayt eigno royn eo ef international t,s idFeIIn t flionw asn oatrhee rn oetc odnioremcyte db ya tw aacyq uoifr inexge rcising significant cocnotrnoolm oyv einr aitns cpBoruimmpt aaarin liyes stc.roh naFrgIaI c tftelreroinwzdes d wtboywe rsaey nadlmicoatset d nboann-ke xliosatennst inu n1t9il7 01ms9a f8on0alsglo. ewGmeldeon bbta ylc FocDnatproI iftla lol owvfsleor iwn f s1o 9rwe8ie0grnse . itamh plementation of rds globalization leading to widespread liberalization and se a p pacroep foorrt iFoInI folfo wafi snd adenvuceriialnolgp mi1n9ag9rk c0eost.u Arnetcforycrom?sr dGsi nDingP tm oin aBtcnhrey ek tahacseeoeru sgtn atrlsounibbdesas H olt amanfr taivtheey w(2o0r0ld0 ),h aFdII aicntvueasltlmy esnett such integration of domestic financial markets wi raklleyts w piethrm liitbse rfareliez aftlioown aosf pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 2 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA ci an acprietaals e omr D fdroi vpmero ?capital-rich? to ?capital-scarce? countries in pursuit of higher rate of return and rsdiufycitnivgi tiyn taenrdn aetfifoincaiellnyc yi. eo.f, hcaoplditianlg a at gwloeblla-dl ilveevrel. pfcoea o urensdid tehnec we,o rhlads inlo pnrgo pboeretino na dtov omcaartkedet acsa ptihtael imzaetiaonnss ,t oir rreessidpfueieccdeti vpoeov roetffor atlio of securities from lhl e pionrvtefostloior? sr icsoku natnryd ruxsniismtrtyei nzveti s?rhi-oask-mv-eais d bjtihuaesst ?ed returns by the classical capital asset pricing model (CAPM). But a f o(ir.eei.g, nth ceo tuenntdreyncy to hold a greater proportion of stocks from the home industrialized countries in early 199) 0ws.a sW niotthi cmedo irne the portfolios of investors in capital-rich (rEedMuEcisn)g 1 t adxeerse igmulpaotisnegd othne fior refiignnan icnivael stmorasrkets by ealnimd inmaotirneg emfoerregiginng emxcahraknetg ee ccoonnotmroiless, sde , relaxing the restrictions on the purchase / sale of tohbevecevce uoeyrmeitairess. bTyo dfoayre, iEgn investors in domestic markets etc., such ?home bias? has decreased over ralollpe epdo rmtfoalrikoe trsi,Ms koE ffase,nr db gy re vefairfettecuret ivsoecf their lower correlations in stock market returns with the loyp ee ntoh ainncvee stthoer s pionr tdfeveloped countries to reduce their o S tehvee mraol srte psereafrecrhr olio performance and hence have esdt uddeisetsi nations for FII flows. fhifan ancial market infrastructure suocnh FaIsI tfhleo wmsa rtkoe Et Msi Es over the world have highlighted that rminofnoirzmataitoionn ofd iscsoermpoinraatteio ng oevtecr.n, anlecgeal mechanzisem, ms arrkeleatt ilniqgu idtoit yp, rtorapdeirntyg croisgthst,s e xettecn.t, fiSmoelcplouowe , accounting, listing and other rules with those rrittadien st i dnae ntddee rvmEexilnocahpnaetndsg omef aBfrokoreaets, and strengthening of securities markets? enforcement are ridg no pf oIrntfdoilai o( SinEvBeIs)t maenndts into emerging markets. Of late, the initiated a string of measures like allowing overseas pen Rsieosne frvuen dBs,a mnku tuoaf l India (RBI) have trusts, asset management companies, ba funds, investment funds, nks, institutional portfolio managers, university (NRIs) eannddo wovmeernsetsa,s fcoournpdoartaions or charitable trusts etc. but banning non-resident Indians raising the caps for FII from 2te4 %bo tdoi e4s9 (%O CofB as )n fornom trading as foreign portfolio investors, sBectoral caps / statutory ceiling as applicable, enhan-cbianngk t hceo minpdainvyi ?s issued capital subject to e1 dual investment limit from . A t e r m c o i n e d i n 1 9 8 1 b y acPcpaoaopnuknk, an emerging, or deve lAopnitnogin, e W. van Agtmael of the International Finance Corporation of the World incornmioosttrxmeaiie nmitscha atrtee ilfsyo in the transitional phas em oafr mket economy (EME) is an economy with low-to-middle per capita r8m0 %pr oogfr athme agnldo bbaul ipldoipnugl aatcioocvnoi unrnget pafrbreoislmietny at i wcnliothseind ttoh ea ns yospteenm m aat rktheet escaomneo mtiym bey. EemMbEasr kcinogn sotintu atne , Plioklea nAdr geetcn.t ina, Brazil, Chile, China, Colombia, gIn daibao, uHt u2n0g%ar yo,f I nthdeo nwesoiral,d ?Ms aelcaoynsoiam, iMese xaincdo , iKncolruedae, pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 3 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA 5a fidme n%ed ps tr,do ome vr1iai0nvn%gadt ai of issued capital, permitting foreign investors to trade in Government securities thtvieens g,s cseotarpsiceint g the norms for FII registration, reducing procedural delays, lowering , ecr odviesrcalogseu are norms, improved regulatory standards etc. with a view to svupported by her strong econonmd iqcu afluitnyd aomf eFnItIa lflows into India. As a result, India, also gcaesritoinuast iroenfos rmfo rm FeIaIs uflroews os ni nF ItIh efl oewmse orgvienrg t hme ayrekaerts sscp,a anch eba est ogdbaaueycg.oe mdT hefre o omenxe of the attractive pthaen sfaiocnt athrya effect of 2mrross purchases minus gross sales) FII flows into India have risen sharply from tR nse. t 5(1i.2e6., in0soa0t rietu tiino n1a9l 9in3v-1e9st9o4r s 2 b to Rs. 46,215 crore in 2004-2005, with the number of foreign r4k-e2t 0h0a5s (nSeocuerscseit a:t eSdEe BinreIs gwe aererbcgshiis toete)n.r etThdhe iwith SEBI increasing from 3 in 1993-1994 to 685 in sim inpclriceaatsiing dominance of foreign investors in Indian time and iancvceosutnmAt e ons of FII flows for the Indian stock market dnl atgeth a soif icwung. itisth h ionFuI tIt h iefnl coerwxetases rihnneagll p t bhsaeul apfnpoclreeem igoennf ptd aetybhmte eodnfo mtsthe? eps otrisecic tiisopanive, ninrte gdcsou aucnend tr augment domestic thiees ,r ecqourrierecdt current return for equity, and enhance stock prices rate of t of the host countries, yet there are worries about tcwhooee ma vastph u?aehlnerability of recipient countries? capital markets to such flows. FII flows, often referred roret d fr miteoon ndoestyh? (i.e., short-term and overly speculative), are extremely volatile in character ? ewrh foo rcmoms eo f capital flows. Foreign portfolio investors are regarded as ?fair-iwmpending trouble in the h ions tw choeunn ttrhye rte is money to be made and leave at the first sign of recipient country. Often, they have been bhlaemreebdy fdoer setxabailizing the domestic economy of the tphe host nation by making large and concerted withdrawcearlbsa atitn tgh esm slaill economic problems in vaoeakness. It is also alleged that as they make frequent marginaglh taedstj uhsitnmt eonft se ctoonomic rritafolios on the basis of a change in their perceptions of a country?s solvency rather tthheainr f1cue9n9d9a ti )mon. Feuns rtitahnlse u nr,t derlying asset value, they tend to spread crisis even to countries with strong hite rise bfye arceadu sting ?contagion? in international financial markets (FitzGerald, coxapuchntuatrrnying?sge b ara alalatenr gceoe f po aft rhptea o yfdm oethmenh etassse,tt cicctour eorica tutmeiersr ueecx? nmhcc aeyosf FII inflows may build up sizeable surpluses on a r ksoe lrit qious niad ilsdtoyo maansed hence exert upward pressure on the ssotcicia tpedri ces. The fear of foreigners I n v e s t m e n t with FII flows. Accordingly, 2. FII flow sb iyn tt ho e I nGdoiav ebrengmaenn itn o Jfa Innudairay i n1 9S9e3p tfeomllobweri,n 1g9 t9h2e. promulgation of Guidelines for Foreign Institutional pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 4 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA isdt oho hu amisll viewed that as securities markets in developing countries like India are narrow and avt eo ionwf an at npdo saisti othne i nf otrheei gcna pinitvael smtoarrsk heta,v FeI Ic oflmowmsa nhda voev ethr ec poontseidnetiraalb floe r fmunadjos ra cnadp iotaclc uflpiyg hat the In bdeIieannndia driving the prices down sharply and hence inducing considerable instability in hstock market. The dangers of ?abrupt and sudden outflows? inherent with FII flows tCheir pione ighlighted in several research studies. Froot, O?Connell, and Seasholes (2001), in tdheme ev adleuvaatilounae trioionfng T owhfao rk on the Tequila crisis in Mexico (which began in December 1994 with iM cexican currency ?peso?), East Asian Crisis in July 1997 (triggered by bf a eaf pecitta lo nM galnoabgaelm ceanpti tcuarrlir sefinlso cwiyn ?baht?) and the Russian devaluation resulting into Long Term s ,September, 1998, have found evidences of a strong negative rdaei stehde aIbnoduiatn t hpeo wlicisyd momak ienr sp raeolslm pteohcially to emerging markets. These crisis episodes have tei nmore wary about FII flows as questions have begun to rahorrAae und isH ao wmeavteterr, tohfe s iosmsuee coofn wtrohveethrseyr .Fg II tIs hufaclohs w bflseo eawnf fspe. cetr csetiovcekd mina rskoemt ere qtuuranrste orsr tthhaet oFthIIe rf lwo ay r mth eth me asjtoarb idlritiyv eorfs iotfs smtoacrkk emtsa. rCkeotnst irna rIyn dtoia t hainsd b heelniecfe, iat sius dvdieewn eredv beyrs aolt hoefr ssu tchha tf lFoIwI s mways vepBoon a cat ntoa ltyhseis e xoifs ttihneg cdriirseicst iionn t hoef sctoacuks amlitayr kteot , upnodsesirbstlayn edx athceer bpaotsinsigb liet rdaethvears ttahtainng c flows aeufsing it. ullatility of FII flows on the Indian economy is important from the viewpoint of fIencdt iaof ticy makers especially when such flows have recorded a sharp rise over the last decaden. baneedn, as very few studies have been done so far in this regard, the present empirical study has I nundertaken to throw some light on the cause and effect relationship between FII flows dSpea d ls wAiaithcnc s lotirotedcrikan tgmulryae,r ksteuhtre v reeretyumrn wahsin. ildee rt hoef ththired psaepcetrio ins oourtglainneizs etdh ea so bfjoelclotiwves . oTf hte next section reecsteionnts ftohuer f ienladbinogrsa toefs tthhee cdaastea s stuoduyrc. eF,i nhaylplyo,t hceosnics luasnido nrse saeraer cdhra wmne tihno sdeocltoigoynh.e S ceacsteio nst ufdivye. six. evxisp-làa-ivnieTsdh l oe II. LITERATURE SURVEY icn na lta etuirnmrvees osoftof r rs?ecl. uaTmthiouenl tashthieivope r ybie ntsfawoyresmen tah taFitoI nI loafcll aodwl iisnsa vdaevnsadton Irtnas gdpeioa? nso sfes tsfosoc grke riemganate rpkr okerntt ofroewltiurns can be loe dignev easbtoourst pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 5 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA I?cpn fpve hodasisiaitnniv gef ibnfeeahenadcvbial markets than foreign investors and this information asymmetry leads to iaocukr? trreading? by the foreign portfolio investors. Feedback trading or ?return- areilcudeebsas c. akTn dhtr eahd eirennvcgee r ssbterra ibnt feeegg rs hsy a t ivnl oe investors? reaction to recent changes in stock prices. A positive i oamudsro roteof pbsoeulrylt or (sell) decisions following a rise (or fall) in stock ifnogli o( oirn fbluoywis into the market after a gain in market falling) is termed as ?negative feedback trading?. Ancgc)o rwdihniglel the stock prices are rising (or innfmleo vwe sitnofros,r mbya tvioirnt uaen odf ctahuesire ina foprrmicea ticohnaanlg aed, vaanndta tghei,s mpariyc etr acydh,ea niitng m esay be reasoned that local tmocakys, iinn rteusrpno,nse to some awo s due to positive feedback trading lead to FII inf by foreign investors. Thus, the hypothesis of rkrmeta rteiot nal disadvantage resulting into positive feedback trading suggests that Indian stock rcpepao tpu Th ue rncos nsthroauriladn l etahde ofrlyo wosf. flows affecting contemporaneous and future stock mark irtnasl coexists. Froot, O?Connell and Seasholes (2001) have demonstrated that internationeatl riicnets .s hTfolhocewk ? hst eo?pr drieinndtgeict? i.e., lead price changes. They have found evidence that a one-basis rbneahtiaovniaol portfolio flows results in a 40 basis point increase in equity reverse direction of causalituyr ?f of foreign investors is cited as the possible explanation for the ttpendency of a majority of invesrtoorms tFoI fI ofllows to stock market returns. Herding refers to the pheoer rftfosoralmmioae n inctveim erseetol.a rtW itvoeit s hut of thfether a tth ienoc fc eoonntthivseeeqr ufseutnnrlcudoecwsts, u e otrheafe ch brfeeo o rtini her and to either only buy or only sell at sg f awu ngdror enagmt wadnheaaegln ers being linked to their oefv einrycoennteive for a foreign than taking the risk of being wrong when some others are right. Thus, her disi nwgr obnyg f, orraether investors may be quite rational in market place ign spirali . But such herding can lead to stock prices their fanigr vuap (or down) in times of price-rise (or fall) and hence push the prices far away from bnhetweenIn F 1lII9u 9efl0sos aw, nssd e avonevdrear dls horomeoseet sathtricceh m s tsoaturckkde ietm se aqhurkaievliteb rreeiuxmtuprln.o sr ebdu tt hteh ec aruesseu ltasn dh aevfef ebcet erne lationship amgnaatvduere. Tesar and Werner (1994,1995), Bohn and Tesar (1996), and Brennan and Ca moi (x1e9d9 7in) f oeuxnadm einveidd the estimates of aggregate international portfolio flows on a quarterly basis prareoravkteeedrt tvrheoatlutar stntiolsic. e t ynkJ c oesi n tr (oa2mfd0 eap0odr2ks) be itive, contemporaneous correlation between FII inflows and stock yths f aocsro esmhigponaw irnendv e etmpirically tested instances where FII flows induce soto rdso emxepsetircie nincvee hsitgohrse rw vhoillaet ilBitaye t heat.na lt.h o(2se0 0in2 )w hhaivche pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 6 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA ssBu hCh c ma eohhvk w eanin tvheastt olarsg gdeod ndootm heasvteic m stuocchk imntaerrkeestt. rOetnu rtnhse acroe natnra rimy,p Gorotradnot nd eatnedrm Ginupta (2003) have ersti gannidfi cHaanrt veiym (p1a9c9t 8)i,n a nidn cErerarsuinnzga (v2o0l0a1ti)l ithya veo ff osutnodc kevidences that aFnItI oflfo FwIsI dfloo wnost. oankrabarti (2001) has observed that foreign institut returns. In Indian context, infortmhlayt iodnaatal -sdeist afdovra nthtaeg ep ecroiomdp Mared to domestic inivoensatlo irnsv iens ttohres dInod niaont ampaprekaer ttso. Ubes iantg a na itpnflows are not only correlate ay 1993 to December 1999, he has found that FII net dhaeboenrym ceeepffstteiicoc nt s toothfc akfno the cause of d twhei thI ntdhiea nre teuqrunist yin mInadrkiaent erqetuuirtyn sm. aCroknett rbaruyt atroe tmheo reg elnikeerlayl mreaigrkne itn ivne sItnodrsia? ,a cetviivditeinecse h farvoimng c aa ustsraolnitgy dteesmtso cnosntrdauticotne de fbfye cMt aunkdh edriving the dr eCtuoronnsd iono t h(2e0 d0o2m) seustgigc eesqtsu itthya tm FaIrIk eflto awnsd tnoo at ntdh ef rootmhe rth we aIyndian market tend to rbjee ec,a Buosesde Bheose and Coondoo (2004) have found mild evidence of round. In a subsequent study, retiugrhntse noend t hFeII B inSfElo swtosc cka uinsdeedx b ayn adn F uII net inflows and reas obnie-dd itrheactt iiot nmala yc ahuasvael ibtye ebne dtwuee eton psurge in global equity markets. The discussiIoInI. o f OBJECTIVE OF THE STUDY sdeocmtieosnt iscu sgtgoecskt sr ethtuartn tsh Indian as well as international studies in the preceding est iissue of direction of causality between FII flows and ianimtos t haet dseent sitivity of FII flowlsl tore dmomaienssti cu mnraerksoetl vreetdu.r nSs oo,r iont hoerrdweirs eto, thpero evmidpei raicna li nsstiugdhyt stock m ermining whether FII flows to India are caused by or are the causes of national arket returns in the light of the above-mentioned research studies. IV. D pmMaiasdty decT ATA SOURC ahdeer e W M EE, THHYOPDOOTHLOEGSEYS AND RESEARCH i nhdauvcee bde benay qsueviteer aa few episodes of volatility in the Indian stock market over the - 11999987, , Kimarpgoisl itionr oifn ecJuonnle oa md1iv9ce9 rs9sae, n Scetxtiooocngkse nMsouuabsrsk edeqetuv eSencltoa pmtom Peonfot kseh alriraklnye N2E0ua0cs1tl eA aarsn iedaxn p thlCoer siiBsoilnsa ciinnk pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 7 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Mfp eanrloohlm naidnnpac y of May 17, 2004 when the market was halted for the first time in the wake of a sharp ttiehndeg tithnhede e Ianxgd.g iAraen gs apharp decline in FII flows coincided with the above events and this has toel iFcIyI minavkeesrs to announce a number of changes in FII regulations like tfuoon rdtereiagde in exchange traded derivtamtievnets li(minit (in February 2001), permitting foreign investors rsnt anidnivnegs toorfs ?th ei nctaeuressatls linink agthee b eItnwdeiae nnD ec FcIaeI pmfiltboaewlr 2sm0 aa0nr3dk) etc. in order to regenerate the ecto. ntSeom, potora nfeaocuilsitate a better returns, a period of eight consecutive financial years ranging from April 1997 to s Mtocakrc mh a2r0ket is select tv Medo nfothr ltyh en eemt FpIiIr icflaolw stsu d(iy.e. 05 ., gross purchases ? gross sales by foehaqeru iIndian equity market and monthly averages of BSE National Index corenisgtnit uitnev tehstors) into iatbles in the study. BSE National Index is a market capitalization- weighted ei ntwdeox k eoyf eaxvcerhaaygn esghsea osr ef- dsM aoiuf 100 companies from the ?Specified? and ?Non-specified? list of the five stock lym cblaois,i nCga licnudtitca, Delhi, Ahmedabad and Madras - and its monthly values are fluctuations than the bond markees.t ,S tihnec e the market for equity shares is subject to much larger tBhe secondary data for the relevant samemplpeh paseirsi ois on equity market in the present study. Both taBhne tswtaot iesstitcimala atenda lvyasrisia obfl ews h-e mthoern tFhIlIy fnloewt Fs IcIa fulsoewd sastr oaec sko a bmta pairornkpeeodt from RBI website. However, r trieotnu ronfs or vice-versa is based mSSEE mNaartkioent acla pInitdaelixz aitsi oan raenpdre mseonntathtilvye r emtuarrns on BSE National Index. tAhes pmreecnetidoinnegd m eaornltiher?s, sptaoec ket capitalization weighted index of five major raktiscu uerxlea chr omaf noIgnnetdshi ?aosnf mthsateo country and hence use of BSE National Index monthly returns as the rkcekt cmaapriktaelti zreturns in the case analysis appears justified. Since a fmomorenitghnly pnoertt fFoIlIio f lionwvse sttom pernetv idoeucsi smi aotoninosnt hi ?niss tmahnea important determinant of domestic as well as rkimetm ceadpiiatatelilzya tsiucceeding month, the ratio of in the empirical study. Moreover, as BSE National Index valueosn a irse udseerdiv aes FII flow measure the base year 1983-1984, monthly net FII flows are calculated in relation tod pwrietvhi oreuference to ocaSo bamrket capitalization in order to make th s month?s s e dataset of the two variables comparable over the ntaptiinnleeu dop uefrsriood. BSE market capitalization data for the months over the sample period are also cmom RpBoIu nwdeibnsgi tbea. sMonth-wise returns on the BSE National Index are calculated on ini nac ep athrtei csualmarp lme opnetrhio odv iesr ntohites q -lu oi.igetea., as the excess of the logarithm of the average index value rliothnmg, iotf i st haes sauvmereadg efo irn cdoenxv evnalieune cien otfh eex pproesviitoiouns tmhaotn tthhe. pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 8 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA ocobmseprvoen sbtandard Ade ntime series is stationary and does not contain a trend and/or perceptible cyclical d teh.v isiatotigorna,m s keawndn edsse sacnrdip ktiuvret osstias taisrteic ssh oliwkne fmora xeaimum, minimum, mean, median, tooew tdnwepict the trend in the two estimated varia ch of the two time series in order eleang tohne et wsoer ieesst ima ated variables? series, ebalecsh oovfe trh teh ee sstaimmaptleed pveariroiadb. lTesh?e sne rcioersr ewlaitthio intss encstimated variable?s lagn do nbee stewreieesn areea cdhe teorfm tihnee de tsoti mhaavteed a vparerilaimbliensa?r ys eurniedse rwstaitnhd itnhge ooft htheer cmoaatoruunrserela tioofn sr,e liaf tfioounnshdi,p d ob netowt esehne d smtoucckh mligahrkt eatn rtheetu drnirse catinodn oFfI Ic afulosawlist. But since positive tahl?ist y BtSesEts maraer kceot ncdaupcitteadli zbaettiwone eann dm omnothnltyh lnye tr eFtuIIr flows as a proyp,o rptaioirn- woifs ep rGercaendginegr ampopnlythin?sg BGSrEa nmgearr kceat ucsaapliittya litzeasttiso, nm aoren threly net FII flownss oans aB SpEro pNoarttiioonna lo fI ntdheex .p rBeveifooures Ienrpevdideexn caen d ovfi cea-uvteorcsoar rteol aetexamine the expl garneastsoerdy opno wmeorn othf lyp rreedtiucrtnosr ovnar itahbel eBs SaEn dN taot iofinnadl aua grraemsseitoenrss are run using tdh e reSsPidSuSa lsst atfirsotimca l thsoe ftwDaurreb iann-Wd athtseo nf irs(tD o-Wrd)e r satauttiosctiocr.r el atTiohne areto ecsotirmrealate(tedid. ef..o, ra u msee ains utrhee oGf rcaonrgreelra ctiaouns aolfi ttyh ete ssetsri, eisf othfe r erseigdrueaslssi owni trhe siitds uoawlsn a lraeg f oonuen ds etroi ebse) u vdYaseir?.pni eagTnb hdlFae G e -tn treasntsg etro c aeuxsaamlitiyn et ewst,h edtehveerl olpaed in 1969 and popularized by Sims in 1972, involves t ?X i)s ,v? aapruiraotobvrlieedg e?Ys any statisticallgyg esdig niniffiocramnta tiionnfo romn atai opnr eadbicotuotr t(hie.e .,r eisnpdoenpseen d(ei.net.), re?s isniv teh et epcrhenseiqnucee oisf luasgegde dt o?Y e?.s tIifm naotte, tthheen f?Xol ldooweisn gn out nGrreasntrgicetre - cause ivUnacluding all lagged terms) and restricted (i.e., not including lagged d (i.e., nriable) equations in this test :- terms of exogenous restr icted equation :Y t = Ct + ?pi?1 ?i??? Yt-i + ??pi 1 ?i????X t-i + ut pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 9 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Restrict ed equation : w Y/t = C/t + ?pi?1 ?i??? Yt-i + et here, Y = t , Y/t dependent variables Yt-i = lagged terms of dependent variable ? ? ? C X tC-i / = lagged terms of exogenous variable t , t = ccoonstants i.e., intercepts measuring mean level of dependent variables. i????i????i = slorprees pocnodeifnfigc ieton tsl agogf independent variables where coefficient ildnaegepgreteinadd eotnef depend ed terms of dependent variable indicate the trms of eenxto gveanrioaubsl e vaanrida blteh e mceoaesfufirceise ntth ea sssoecnisaitteivdi tyw iothf up = autoregress vivaeri alabgle l eton gvtahr iataions in exogenous variable t, et = residuals in regression estim tion owf squaUresde oref sSidPuSaSls s toafti s utincraels stroifcttweda r ee qeustaitmioant e s(R thSeS UabR o)v ea ntwd oo fe qruesattriiocntes da n edq uyaietilds the sum aIfnhe ?T on (RSSR) re - RSSUR = t?1 ût2 ; RSSR = ?Tt?1 êt2 tdh S e teT= total number of observations in the time series. = s t s t a t(iRstSic RSSR - RSSUR ) / p diso egsre ater than thSeU sRp e/ c(Tifi-e2dp -c1r)i tical F- value (i.e., Fp, T-2p-1), then the null hypothesis that ?X e nopdfef St iGncraen gperer v-i coauus sere Yse? aisrc rhe jestcuteddie. s have found that other than its own autoregressive reioctd ( il.aeg.,g deedp ernedtuernncse oofn itthse o wn lagged value), FII flows to India are also dependent on one t etermine causality in the presednot msteusdtyic a pstpoecakr s mjuasrtkifeite,d .u Ases of Granger - causality tests to ested, there are two null hypotheses in this case study ? the direction of causality is to be pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 10 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA THe Os :t va a M-1 po rnotpholyrt iBonS Eo fN parteivoinoauls I mndoenxt hR?seturn does not Granger - cause monthly net FII flows as [Inr itahbilse awuittohr eigressive analysis, net F BIIS fElo mwasr k/ eBt cSaEp imtaalirzkaetti ocna.p italization is the dependent tTHweo independen tst voawrina blalegsg iend utnerremsstr iacntedd l aegqgueadti ovna]l.u es of BSE National Index returns as the Ost d- o2e : Mosn tnholyt Gnreat nFgIeIr f-l ocawuss ea sm ao nptrholyp oBrtSioEn N oaft iporneavli ous month?s BSE market capitalization [luaHngergereesd, tr BivaSlEue Ns oatfi onneat lF IInI dfleoxw rse/t uBrSnE i sm tahrek edte cpaepnidtaelnizt avItianordnieax ba slRe t ehwteui trthwn .o it si nodwepne nladgegnetd v aterirambsle as nidn cted equation]. I(np ) tihse t ackaesne aasn a1l.y sis, one period lagged values are used and hence autoregressive lag length npet FII Tflhoew V . FIN DINGS hsi satso gar apmro apnd summary descriptive statistics of monthly net FII flows, monthly rerteusrennst eon BSE Nationaolr tiIonn of previous month?s BSE market capitalization and monthly d in figures and tablesd ebxe loowve. r a 8 - year window (April 1997- March 2005) are pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 11 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA 00 Figure (1) : Monthly Net FIIM Inafrlows (Rs. Crore) from April 1997 to 1 ch 2005800 000000 24 6 000000 -2 July -4000000 0 November Marc h July November Marc h July November Marc h July November Marc h JNuloy vember Marc h July November Marc h July November Marc h July November MarchYear/Months prF eivgiuoures (m2)o :n Mtho?sn 1tBh9Sl9yE7 n tmeota FII flows as a proportion of Mrkaertc hca 2p0i0ta5l isation from April 00.008.00 46 00.00.00 02 -0. June October February June October February June October February June Oc -0.000042 Ytober February June October February June October February June ne October February Ju Octobeer F bruaryear/Months pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 12 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA FCII a/ pBitSaEli sMaatirokne t Net FII Inflows as aT parb olepor)tion Numfobrfeo pr S M mr tis (1 : Descriptive Sta tics of monthly net FII flows oa eAvfx Opioruils 1m9o9n7 ttho? sM BaSrEch m 2a0r0k5e t capitalization imbusmer vatio ns 96 SMtand KaMkMiniuerededmauiannm - 0000....00000000701249353471 7980360272597684 rwt oDnseeissvs ia tion 010...81051040186832983881098811 Figure (3) : Mont Ahplyri lR 1e9tu97rn tso oMna BrcShE 2 N00a5ti onal Index from 00.1 0.08 0.0 0.046.02 --00.020. May August NovembeFr ebruary May August November February May August November February May August November February May August November February May August November February May August November February May August NovembeFr ebruary --00.0064.0 -0-0 18.1.2 Year/Months pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 13 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA BSE National Index Return onT BabSNEu mNabteiornalc Irnd le ipteixv e (2) : Des f rSotma t iAstpicrsi lo 1f9 m97o ntoth Mlya rrecthu r2n0s0 5 S MM oa tan m S dKaMkM f inx Observations i uerede i dmmaunum m -00..008908929653 91722548 rwt oDniaseenv iat 000..000043953810800757 isss ion -00...045324332475862489885136299 B sBhS oEnt It is clear from the above charts that monthly net FII hN?sa tBioSnEa lm Ianrdkeext coavpeirta ltihzea tsioanm pexleh ipbeitr iao dn.e aHr oswimevilearr, tBreSfnlEodw s as a proportion of previous aNs that of monthly returns on c S oEw greater variability than net FII flows / BSE market capital ational Index return series their mreasprkeectt icvaep sittaanlidzaartido nd ebveiiantigo npso.s iBtiovtehl yth sek dewisterdib wuthioilnes B are asiyzmatmioent rsiecr wieist ha sn eint dFiIcIa tfelodw bsy/ sNkaepwitaeldiz oantieosn. bAeginaign m, boorteh s ttheee pd tihstarnib ButSioEn isn adreex lreepttuor n- dkiusrtic S Ew iitnhd neext rFetIuI rfnlos wbes i/n gB SnEeg matiavrekleyt bea The cross - correlations between net FII flows / BtriSbEu tmioanr.k et capitalization and Bltoiown. al Index returns and their lagged terms for the sample period are shown in Table (S3E) pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 14 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA M IoMnn[doPeriod T oafb Slet u(3d)y : : C Aoprrr iel l1a9ti9o7n -M Maatrricxh 200 neBxtShEly Nraettiuornnasl mM 5] oonnthllya ggerdet thly ne Ionnd eBtxh Mon SE Natiuornnasl one proportion t FII flows as a B on 0 m th caopnittahl?isz ati oBnSo Efl a gpgremedavriokuest ly net FII .294 0.152 month one pfplcarroSpeowEvpso rtiona s oaf it iaoluizsa tmimoonan rtkhe?st pfpM 0.455 Blrrooeowvnpsthly net FII 0.239 - 1 c ioo rutiona s oaf laaSgpEgite adml s mmoanrtkhe?st ioznaeti omno nth IoMnndo BenxSthloyn returns 234 1 - Ela gNgaetdional th 0. one tphcoe The above correlation coefficients suggest that there is a positive relationship bets ivtariables, though not quite significant in nature. The estimated variables also appear wtoe bene ipndexiv erelytu crnosr rerleastped with its own lagged terms thereby indicating that past FII flows or BSE ao laprureroslipabotlieort,ni oa undto ooersfe gpnroreeestcc,s tieiiovdnine lnsiygt sa ea rmelfff o,r enuicmtnt h pcontemporaneous flows or returns. However, a positive ?tsoly tB ecSsatE uGsa mraliantyrgk.e erAs both directions of causation are equally t ccaaupsiataliltiyz abteiotwn eaenn monthly net FII flows as Ind d monthly BSE National ex resToftwarRetu eringn rose.rs dseior nt oo tfe seta fcohr osef ritahle c oesrrtiemlaatiteodn avmaroianbgl erse gorens stihoen orethseidr uiasl sr ufrno mus iDn-gW th set aStiPstSicS he regression results are summarized in table below. . pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 15 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Particulars N FDu m Tab 4 le ) ( : Reg ression Results [RIImpe Panel agfrlroewsssi oans ao fp mrAoop n otrhtliyo nn eot p r[BomRNpSeaooEgtnrirotehnslasyiloPna onfe ml Bo n thlorenkv nInetd FexI Ir feltouwrnsy sa B soSE n Iteinhotd lucyesax month?s BSE f Bpitalization on rSeEtu Nrnatsi]o nal tmioanr koef tp craepviitoaulisz matoionnath ?s epmebnedrent varsiearbvla ] of ob et ions Mpmonthly net96 9raervkioetu cs apitam lioznFatItihIo ?ns flows / BSE rMetounrnthsl y BSE 6N ational Index IUndependent variable Cco rMetounrnthsl y BSE National Index Monthly net FII flowsonensftfaincideanrtd month?s BSE market ca p/i taplriezvaitoiouns si z: e d stant (00..000001) * (0-0.004 IADnddependent variable .004)* ujusted R2 (000..00.0017677) * (150..71.0387917) * *Firbin ? Watson 1.190 1.646 guree s in parentheses indicate standard errors of the coefficients c The above regression results indicataxlopslea ntoat o2r yin p Poawneerl aBs, sthhoew rneg bryes tshioeinr iand jPuasnteedl BRe 2 c tvohanalfut irembs.o sSth tion cthteh eet haerbe sDgerunercsbesio nor-sfW have the same seartsiaoln c sotrarteislatitcio ins aSmur PtSooSncog sr orreeftlgwarteaiossreni. o cTnoh erifesfs iaciudieutonactl osa. But as Durbin-Watson in Panel A is smaller than 2, the lag 1 rmreolantgio rne gpraersasmioent erre sisid uals in Panel A is estimated at 0.389 using oeturns to fl used to test Granger causality running from The onwexs t( it.aeb.,l eT perset s?e n1t)s. the results f the two null hypotheses. of lag 1 autoregression and Granger causality tests pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 16 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Par Table (5) : Results of Autoregression and Granger Causality Tests ticulars Null Hypotheses (HO) G [ Mont Test ? 1 U F r Indexh rley BSE National IaI nfgloer ? catuursne mdooenst nholyt net BprS[ Monthly Tneestt F ?I I2 flows n pmraervwkioesu as a proportion of nt sc ampoitnatlhiz?sa tBioSnE] B oEopSt Eo mGrat Nriraoaknnetig otoe fncr aaprevious m oanst ah ?s -lcp aitInuadsleeiz x amti reootnnut rhdnloye] s restricted equation Y t = 0-0.0.001118359 - X0.24527 Yt-1 t-1 Yt = + - 0 .40.051182 3- 10 .X16388 Yt-1 R Se t-1 stricted equation Y/t = 0.00052 + 0.633 reequsum 998 Yt-1 Y/t = 0.00285 + 0.250248 Yt-1 ida oftuiaolns (oRf SuSnUressqtruiacrteedd 00 R 0. 025 0.09 538 Sequ ) resumida tuiaolns of(Ro Sf S ressqtruiacrteedd 00 R 0. 027 0.10 044 T*e ) s 1G%ratn g-e r cstaautsisatliicty (uSn)d er 7.4 1* 4.88 ** S inacned th5e% t elsetv setlast isotfi cs uignndiefirc Tanecset ,- G1 rias greater than the critical value of F- statistic at both r*oe*tf uHrnsiogsnw dieofivc enarno, cta ecsa, tuhnseoe n TF-ecIsaI tuf-ls2oa wslittasy ta ist itbsi cor tiehsj e gtchrteeea ndlteg ever causality test rejects the null hypothesis that ore ntlhslya o nfa cst riigtthniacitafi lc lveavanlecuel e. a onfd F -asctcaetipstteicd only at 5% level significa at 1% level of nce. pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 17 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Mm ia ldr c he v 2Tid0he0un5sc ,e st uhogefg l reaesgvt et1rh sataetl s toth rfee crseau uilsstas lsuiustypi pnaogsr tFm IfoIon rf thlcoalwyu sso acblaistueyrs virnaugtnio nnreinstug or nfvsre oarm tre h rese itgpunerinrifsoic dtao nA tfp loorniwl lys1 a9a9tn7 5d ?a lraevel. These results indicate that FII flows are more an effect than a cause of stock mark%et weturns in India. Such a finding is suggestive of foreign investors? return-chasing behaviour ipnnpcaeaev de shtoernsc ev i supports the theory of ?cumulative informational disadvantage? of foreign rackenpetisosn otfsh -aeàtv-v iFdisIe Inl cocal investors in the Indian stock market. On the other hand, the fleo wofs causality from FII flows to stock returns contradicts the age-old srteisc uolfa rinlyd iwviidthu allo cstaol ciknsv . edSseutotcerrsm iminiet amtinagrk feot rereigtunr nins viens togersn?e rmalo, vaelst,h omuagyh w?helelr dbien gp?r eesfefnetc tisn, tahgeg rIanvdaiaten tshteo cokc cmurarreknect ea onfd itsh e va idreelnatt isounsscheippt,i bthileirteyf otor em, saungipguelsattsi othnast, , FgIiIv felno wthse c tahnin, nine sfsa cotf, equity market bubbles though they may not actu and IndTiahne V CONCLUS ally start them. I. IONS estmocpkir imcaal riknevestigation of the direction of causation between FII flows to India rTpeohvleeic asylle idigm htpth aleticv aiFtdIieoIn nfclseo b weocsf aaatur ersre eec vtoaueurnf rss over the time period April 1997- March 2005 has thus tsheioed n pb ooy rather than causing the national stock market returns. tfe ncausality running from flows to returns as well has the stock market. But, given the abili tial of FII flows to aggravate the crisis already set in Indian capital markets, strengthen the tmy of FII flows to augment the sources of funds in the in market design and sound corporate goarvkeet liquidity and efficiency, advocate modern ideas teof femctoivdeelryn afrignuanedci atlh atte cthhne iqruoeles oafn df orineitgernrnn aaitninvocene practices, and expose the Indian investors satlo rbsest practices and systems, it can be fmbuuanikclteti-ironsn -mcinuugss hto iaofd nIon pwdt iiaath nc inacua tptihoietua sls aympspartermkoeat csah g cwaaihnnnislote tf tuhbreet hupenor d slsiebirnibep lrleaad lyeidezvedeloping and strengthening the in. sgHta bthowever, the Indian policy ilei zFII policy by instituting reversal ing effects of sudden rhhe I to mf FaIyI bfleo nwost.e d that as information flows in fina iogtulhdrlnsys i m mamnodde neilns-esv pepesoctmtiefniecnti.a t lIf nlin o swduesc,th e tchaeti n sgtiet usthat etoi odfn ir,ce actuhstieoa nlmity oo fdb ceenal-tuwcifsraeealeel markets drive both stock market i ntya prbepetrutowranecseh n and FII flows can be oFfI IG frlaonwgse ra ncda uInsadliiatny pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 18 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA sot lobonscgeker vr amptieaorrnkiose dta nordetr, u oerfvn esa.n sI, hndo irstvaeigre gwsrae mgoapf tleedt h pede arliiomd,i taat imonosr e odf etuasiliendg smtuodnyt hulsyi,n gi ndsateilayd doafta dfaoirl ya, irnevtuersnto -r sc haats tihneg sbteohcakv ta showing the transactions of individual foreign iloevuer lc taon hbeel pid aedndtirfeiessd qaus epsotitoenntsi arle gaarerdasin fgo rt hfue tuexr tent of their herding or e research. VFo laBtaile References it, y Kinee E-m eHrgoinngg, EKqauloitky MChaarnk etasn"d, PAapngela Ng. (2002). "Investability and Return EimnaeBBnrgecakea, eNrta, tiGoneearl tT aaniwd aCn aUmnpibvee er presented at International Conference on lrls iRty., HDaerpvaerytm. (e1nt of Finance. tirnag, MAmariktae.t (E2q0u0i3ty). R"Tethuer nDs"y,n NamBE 998). "Capital flows and the behaviour of icRs oWf oFroking Paper No. 6669. IEnPoqduiBrtBa"Bitye , foo k I olh MaC nion eRrtI, EGCeRe rWt oarnkdi nCg aPmappbeer reign Portfolio Inflows and Equity Returns in lNl oR. .1 0H9a.r vey. (2000). "Foreign Specu ,a Hrkeentsn"i,n gJ oaunrdn Lali nodf aF Lin. aTnecsea, rV. (o1l9. 9L6V)., N" oU.S 2 ,E Aqup lators and Emerging irtiyl. Investment i s eRr-eNbeaalal,n cCin.,g Sotre Rveentu Lrn. CJohnaesisn, gD ?a"v, i dA mLerican Economic Review,n V Foolr.e 8ig6n, MMaayr.k ets : FeedBboascek, TSruacdhiinsgm aitnad aFnodr eDiginp aInnvkeos inman and Robert Neal. (2002). "Herding, rt oCrso", Manuscript, Indiana University. INnod.i1a8 :- 1A Time - series Intervention Anaolnydsioso o. f( 2E0q0u4it)y. "FTlohwe sI"m, Mpaocnt eoyf &F IFI inRaengcuel,a t iVonosl. i2n, FCNlowBsr"e,n 9 Jn,oa Junur, lnyMa-Dl iocefhc Faeeminl abJen.r c.e a,nVdo lH. L. IHI, eNnory. 5C, Daoe.c (1997). "International Portfolio Investment Vaop Citaall vtoo, DGeuvilelleorpminog A C.,o Luenotrnieasrd ion Ltheeid 1e9rm90asn" ,ae nJmodu bCernarar. ml en M. Reinhart. (1993). " Inflows of o. l.C2 2h, ,aS Nkp of Economic Perspectives, Vol. 10,rorain.bg 7a,r. tOi,c Rtoabjeesr h-. D(2e0c0e1m)b. e"rF. II flows to India : Nature and Causes", Money & Finance, pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 19 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA dV Aeoslt C .abhioliez,e Hstyouckk, mBaorknegt s?- TChhea nK oKrehaon eaxnpde rRieenncee iMn .1 9S9tu7l"z, .J o(1u9rn9a9l) .o f" DFion afnocrieailg nE cionnvoestors Firnea D 5 M E nwo4 mics, re.n bsuusrceh ,A Rb.o uatn dO Yur. CC. lPaassrkic. a(l1 9P9re5j)u. d"iFceinsa",n ciina l RIn. teDgorarntibouns cinh aa nSde cond Best World : rcruianlz Oa,p Venihinagn g:. P(o2l0i0cy1 )L. e"sFsoornesi gfonr P Koortrfeoali, o K Eoqrueiat yI nIsntviteusttem oefn Finance, SYe.oCu. l,P Kaorkre ae.d ited and Economic Development", Review of International Eco ts, Financial Liberalization Issue : International Financial Liberalization, Cap nomics, Vol. 9, Issue 4, Special ReesaeFFsa iutzreGse rtaol dC, oEn.tVro.Kl .t h(e1 9V99o)la. ti"lPitoyl icoyf PIsosrutfeosl ioiinta l Flows and Exchange Rate Regimes. IMarket Based and Non Market Based rorcoht, PKroengnraemthm Ae,. ,W Poarukli nGg. JP. aOp?eCro Snenreiells ,a Pnadp Mera nNvestment", Finance and Development rko .S 8., SOexafsohrod University. fMWloawF atG so orfd oinnt,e rJn. aatniodn Pa.l Ginuvpetsat.o (r2s"0,0 J3o).u r"nPaolr toffo lFioin Falnocwiasl les. (2001). "The Portfolio iEnctoo nInodmiiac :s, Vol. 59. s HlowG t Hh er?", sa:n Pkuen IMF Working Paper No. 03/20, January, Inte rDnoat iDoonmale sMtico Fnuetnadraym eFnutnadls, riinfgfitos,n JDoChn. M., F. Nardari and Rene M. Stulz. , hJe.Ed .o, rW Piuclhleedrn?", ,D N.WBE. Ra nWdo Rrkeiintsgc hP a, pAer.G N. o (2002). "Daily Cross Border Equity (.2 9000030).. Business Forecasting, Aall of India Pvt. Ltd. 7th e Prentice - ssoJMcoi,a tGioanb -oJfe K. o(r2e0a0n2 )E. co"Fndoonmr. eiicg nS tuEdqiuesit.y Investment in Korea", Paper presented at the AppMlicauakktrhiioednakis, S., Wheelwright, S.C. and McGee, V.E. (1983). Forecasting : Methods and rjse, e John rWamilietya & Sons, Inc., 2nd, Pa , Suchismita Bo edn. InstiPtautional Investment in the Indian Eq se and Dipankor Coondoo. (2002). "Foreign Januarly, 1P9a9rt9h-aMpraayti 2m0.0 (21"9, 9 M8)o. n"eFyo r&e iFgnin uity Market : An Analysis of Daily Flows During aPnocre, Vol. 2, Nos. 9-10, April - September. the Economy Benefited?", Economic a tfolio Investment in Indian Equity Markets: Has PUonritTvfeoerlssia nd Political Weekly, March 14. orit y, CL ohinfod Cicahe Li"c,.a gaionnd P JIranecgsors.bid FMre. nWkeelr needr.i t(e1d9 9T4h).e "IInntteerrnnaattiioonnaall iEsqautiiotyn Torfa nEsaqcutiitoyn sM aanrdk eUtsS, pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 20 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA Mo ___ ____________. (1995). " Home Bias and High Turnover", Journal of International Wwww e ney and Finance, Vol. 14. w wwwwwww bs w. i .b.g tseesi ndia.com .reobogle.com sbi.io.rggo.vin.i n pdfMachine - is a pdf writer that produces quality PDF files with ease! Get yours now! 21 ?Thank you very much! I can use Acrobat Distiller or the Acrobat PDFWriter but I consider your product a lot easier to use and much preferable to Adobe's" A.Sarras - USA
Posted: 20 July 2010

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