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Why FDI and FII Investment Play a Vital Role in Indian Stock Market.

Author: Ramesh Bagga
by Ramesh Bagga
Posted: Oct 04, 2016

FDI & FII are the foreign individual or institution do invest in infrastructure or in different public or private sector through FDI and in banking Insurance pension or in share market through FII.

Investment of FDI and FII in Indian economy or in the stock marketdirectly or indirectly affect the growth of the economy.

All this is possible in FDI through Merger and Acquisition that is helpful for ultimately the growth of economy in terms of technology transformation to minimize the cost of production in different industries.

An initiative of Indian economy to liberalize its financial market. It has opened there doors to Foreign Investment Institutions in September1972. The government also plans such policy through which it can attract foreign investors or institution to invest in Indian economy. That would be helpful for sustainable growth of the economy worldwide. Also would make a positive effect on the key performance indicator of the economy like:

Dollar/ Forex reserve ratio

Inflation Rate cash flow within an economy

Currency appreciation

As Nifty and Sensex is the performance indicator of Indian economy in which Nifty represent the performance of top 50 companies from different industry that are a representative of that industry and Sensex show the performance of top 30 companies from different industries that are a representative of that industry. FII is more helpful to maintain the liquidity and cash flow in the market. If Foreign Investment Institution Increasing their investment in a stock or in an industry, according there growth prospect definitely it will impact on Nifty and Sensex. As Nifty and Sensex is the performance indicator of Indian economy in which Nifty represent the performance of top 50 companies from different industry that are a representative of that industry and Sensex show the performance of top 30 companies from different industries that are a representative of that industry. FII is more helpful to maintain the liquidity and cash flow in the market. If Foreign Investment Institution Increasing their investment in a stock or in an industry, according there growth prospect definitely it will impact on Nifty and Sensex

Like a Forex Trading Tips or in cash, commodity, future and option tips an individual can also receive a recommendation in the currency market. According to his individual risk appetite

because, in currency derivative a individual can trade with the minimum investment as compare to the equity, commodity and its derivative.

About the Author

Mahendra Rajput & Sanjay Singh [E-Marketing Executive] | Ways2Capital Provides Mcx tips, intraday stock tips, Ncdex tips, forex tips, commodity tips | TO Get More Details- Visit US ON http://www.ways2capital.com | Contact US ON 0731-6554125

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Author: Ramesh Bagga

Ramesh Bagga

Member since: Sep 15, 2016
Published articles: 3

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