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both of them are positively correlated, as we can witnessed with 2008 scenario, as FII`s keep pumping the money in Indian stock market our sensex sores to 20000, and with current financial meltdown FII starts withdrawing money which forces the OVERVALUED stock to come to their actual worth price and let sensex to drop to mere 9000

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Q: Correlation between fii and stock prices?
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Difference between Foreign direct investment and foreign institutional investment?

A Foreign Institutional Investor (FII) is a financial investor and invests only in stocks and bonds/. He needs to register with SEBI, can buy/sell several securities on stock market and take out his money/profits any time. A foreign Direct Investor invests directly in a project.He is a partner/promoter in the project and stays invested for a longer period. He does not, unlike FII, invests in many companies.


Why did the Indian Rupee depreciate so much against the US Dollar?

The availability or rather the supply of the US Dollar in the Indian markets is pretty limited. Because of uncertainty in the global economic scenario, foreign investors (especially from USA) have turned net-sellers and USD Inflows into the country has fallen sharply. The US dollars into the Indian economy by the FII's (Foreign Institutional Investors) not only guides the movement of the Indian Stock Markets, it also is a potent force that can determine the exchange rate movement of the Indian Rupee. The synopsis of this FII situation is as follows: "If there is a net inflow of money (USD) from FII's the rupee strengthens or appreciates against the US Dollar. When there are net outflows, it depreciates" For Example: During 2010, there were record inflows of funds from FII's into the Indian system and hence the Rupee was very strong. Remember the days when the Rupee was around 42-43 rupees per US Dollar??? Now in 2011, FII's are withdrawing their funds and hence the value of the rupee is depreciating


The impact of US sub prime crisis on Indian stock market?

The impact of the US Subprime economic crisis has been significant and has been on the negative side. Foreign Institutional Investors or FII's in short had been heavy buyers in the Indian stock markets in the past few years. They too believed in the Great Indian Growth Story. They invested in millions of dollars and bought out stocks of India's famous companies. Once the subprime crisis started looming large on the US financial players and other companies they were stuck with bad debt. They were running short of cash which they needed badly to keep themselves alive. Companies like Lehmann which were unable to raise enough capital had to declare bankruptcy. When we need cash we usually sell out our assets in order to save ourselves. The US based companies that had invested in the Indian stock markets did exactly the same. They started selling off all their share holdings to make money out of it. As you may already know, the stock markets work using a simple principle. More people buy -> The index goes up and the share prices go up. More people sell -> The index goes down and the share prices go down. Since almost all FII's opted to sell out their holdings simultaneously the prices of shares of companies that were once considered invincible came down like a rocket that ran out of gas. Almost all companies were being sold out in a frenzy. Seeing the FII's sell in thousands the Indian investors also joined the party and started selling their holdings. Net Result: A Magnificent Disaster which has eroded the portfolio's of everyone who invested in the Indian Stock Markets... The BSE Index or Sensex was somewhere around 21000 during the beginning of this year i.e., Jan 2008. Now it is hovering around the 8000 - 10000 mark. i.e., a correction of nearly 60% The prices of shares also have corrected heavily.


What factor do the Global capital markets are influenced by?

Fii's Inflows or outflows, Interest Rates and Retail Participation


What are the most important participants in the economy?

major players r the fdi's nd fii's nd bluechip cmpanies

Related questions

Foreign investment into Indian stock markets usually flows through?

fii


How fiis contributes in Indian stock market?

FII stands for Foreign Institutional Investors. They are companies from abroad that are investing in the stock market. They bring in foreign investments and exchange and infuse a lot of money into our stock markets.


What is the ticker symbol for Federated Investors Incorporated?

The ticker symbol for Federated Investors Incorporated is FII and it is traded on the New York Stock Exchange.


What is the full form of FII?

The full form of FII is " Foreign institutional investors".


Who has free Wii fii?

mcdonalds. Its spelled Wi Fi not wii fii


How is relation between FDI and FII?

FII generally means portfolio investment by foreign institutions in a market which is not their home country. These institutions are generally Mutual Funds, Investment Companies, Pension Funds, Insurance House's is a short term benefit to the country and the rules and regulations to enter the Indian Market are not much, the fluctuations in the stock market is generally due to the FII Investments , cause the rules are eased the investor can leave the market at Any point of time. There investments are in the stock market whereas FDI is generally a long term commitment to a particular company in a sector in terms of equity investment by some foreign entity. Therefore we could see Lehman investing 15% in say Unitech, now that would be FDI. However if Lehman has bought shares of Unitech though secondary markets (stock trading market) it would have been an FII. FII funding is a paramount maker of stock markets and there selling or buying moves the stock in a day. FDI also have to follow a high rules and regulations to enter the market and the subs. given to such players are huge in term of taxes .FDI have long term commitment and hence we see flight of capital in terms of FII outflows but not generally in FDIs.The Economy high and low depends on the FDI's Investment where as the Stock mark fluctuations are generally because of FIIForeign direct investment (FDI) flows into the primary market whereas foreign institutional investment (FII) flows into the secondary market, that is, into the stock market.All other differences flow from this primary difference. FDI is perceived to be more beneficial because it increases production, brings in more and better products and services besides increasing the employment opportunities and revenue for the Government by way of taxes. FII, on the other hand, is perceived to be inferior to FDI because it only widens and deepens the stock exchanges and provides a better price discovery process for the scrips.Besides, FII is a fair-weather friend and can desert the nation which is what is happening in India right now, thereby puling down not only our share prices but also wrecking havoc with the Indian rupee because when FIIs sell in a big way and leave India they take back the dollars they had brought in.


Does the nexus 7 have 3g?

nexus do come in 3 variants. i.e. 16gb with Wi-fii, 32gb with wi-fii & 32gb with 3g & wi-fii...


Difference between fdi and fii?

FII is investing into financial markets of India. Majorly secondary market.FDI is acquisition of physical assets or capital in INdia. It leads to change in management, transfer of technology, increase in production etc.


What is the full form of FII and DII?

FII is "Foreign Institutional Investments" & DII is "Domestic Institutional Investments"


Want to know about instanex fii index in India how to get it online?

Instanex FII index. It will track the 15 stocks in which there is a concentration of FII funds. These stocks account for 55 per cent of the market cap of the FII holdings in India. The index is for those investors who want to replicate what the FIIs do in the market.The top 15 stocks account for 55 per cent of the market cap of the entire FII holding in India and the top 100 stocks they own account for 90 per cent of their holdings in India. FII index will give the value of the portfolios owned by the FIIs.


Difference between Foreign direct investment and foreign institutional investment?

A Foreign Institutional Investor (FII) is a financial investor and invests only in stocks and bonds/. He needs to register with SEBI, can buy/sell several securities on stock market and take out his money/profits any time. A foreign Direct Investor invests directly in a project.He is a partner/promoter in the project and stays invested for a longer period. He does not, unlike FII, invests in many companies.


Who will pay vat in FIJI?

consumers of FII