1

A
SUMMER INTERNSHIP PROJECT
FOREIGN INSTITUTIONAL INVESTMENTS AND ITS INFLUENCE ON
INDIAN STOCK MARKET
(Conducted on behalf of TIRTHRAJ SECURITY PVT. LTD. SURAT)

Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide: Company Guide:
Ms. Rupal Khambhati Mr.Tulsi Mavani
Assistant Professor Proprietor
Tirthraj Securities Pvt., Ltd.

Submitted by
Mr.RAVI V. GODHANI [Batch No. 2013-15] Enrollment No. 138050592016]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT 805
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
August, 2014

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Students Declaration

I, RAVI V. GODHANI, hereby declare that the report for Summer Internship
Project entitled FOREIGN INSTITUTIONAL INVESTMENTS AND ITS
INFLUENCE ON INDIAN STOCK MARKET. (Conducted on behalf of
Tirthraj Securities Pvt., Ltd. Surat)is a result of my own work and my
indebtedness to other work publications, references, if any, have been duly
acknowledged.




Place: Surat


Date: _____________


__________________
(RAVI V. GODHANI)





















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Institutes Certificate

Certified that this Summer Internship Project Report Titled Foreign
Institutional Investments and its Influence on Indian Stock Market (Conducted
on behalf of Tirthraj Securities Pvt., Ltd. Surat) is the bonafide work of Mr.
RAVI V. GODHANI (Enrollment No.138050592016), who has carried out the
research under my supervision. I also certify further, that to the best of my
knowledge the work reported herein does not form part of any other project
report or dissertation on the basis of which a degree or award was conferred
on an earlier occasion on this or any other candidate.

Place: Surat
Date: ________________




___________________
(Rupal Khambhatil)
Assistant Professor
___________________
( J.M. Kapadia)
I/C Director











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PREFACE
The most motivating aspect associated with pursuing a course in
management or business studies is dynamism associated with it. MBA is a
professional course where in for a student to process only theoretical
knowledge alone is not enough but also to improve practical skill, which is
helpful to them in every field of life in their future. In short student can get full
practical knowledge of personnel, marketing, finance department need to
improve a current scenario.
As a part of syllabus of MBA I have visited Tirthraj Securities Pvt., Ltd.
at a Surat for practical training and also studied on the working its different
department and prepare report on it. I felt that unit was being run supported
by excellent management team.
During the training I have prepared research project on the topic Foreign
Institutional Investments and its Influence on Indian Stock Market.

























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ACKNOWLEDGEMENT

I am very thankful to Gujarat technological University because they contain
training as an essential part of M.B.A. course & make it compulsory to each &
every student.
I would like to express our sincere thanks and gratitude to our beloved
principal Dr. Jimmy Kapadia (Director, SR Luthra, Surat)for providing all
resources to complete this work successfully.
I convey my heartily thanks to Ms.Rupal Khambhati (Assistant Professor)
who gave exemplary, innovative ideas, constant help and encouragement to
this project work & give me better support in the industrial training without
whom it would be very difficult for me to complete this training.
I am grateful to Mr.Tulsi Mavani, the Proprietor of Tirathraj Securties Pvt.
Ltd. for letting me to do this project. I am also grateful other employees of
President Motors who help me in my project work.
Last but not least I would also like to thank my parents for their continuous
encouragement and moral support during the project and all other people who
have helped me in preparing this report, directly or indirectly.
















6

Executive summary

Theoretical Background
This chapter deals with the theoretical background of the study throwing light
on the introduction, forms of Foreign Investment, Differences between
Portfolio and Direct Investment, factors influencing Foreign Investment
decisions and a Survey of Literature.

Research methodology
This chapter states the problem of the study; the objectives of the study, the
scope, methodology, tools for collecting data, a plan of analysis, hypothesis
and the limitations of the study. The chapter also includes the operational
definitions of the terms commonly used in the study, along with which the
chapter scheme is included.

Industry Profile
This chapter gives information on the Foreign Investment flows in India,
Foreign portfolio flows in India, Milestones of FII in India, Acts and Rules
relating to FII, a brief profile of SEBI, RBI, BSE and NSE.

Analysis and Interpretation of Data
This chapter deals with analysis and interpretation of the data collected. The
purpose of this chapter is to draw inferences, based on the calculations and
statistics. Graphs are also included to give a clear view of the data analysed.

Findings, Recommendations and Conclusion.
This chapter is the concluding chapter dealing with findings,
recommendations and conclusion which are drawn after the study on
Influence of FIIs in Equity Stock Market.






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TABLE OF CONTENTS

Sr.
No.
Particulars Page
No.
1. Introduction 1
2. Industry Profile 7
2.1 Global Level
2.2 National LEVEL
2.3 Current Trends
2.4 Pestel Analysis
2.5 Major Players
7
8
10
12
15

3. Company Profile 20
3.1 Company Profile
3.2 Membershi In
3.3 Swot Analysis
20
22
23

4. Review of Literature 25
5. Research Methodology 29
5.1 Problem Statement
5.2 Objective of Study
5.3 Research Design
Source of Data
Plan of Analysis
Methodology
Scope of Study
Limitations of the Study
29
29
29
29
30
30
30
31


6. Data Analysis and Interpretation 32
7. Findings 44
8. Conclusion 47
9. Recommendation 48
Bibliography
Annexure



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LIST OF TABLES

Sr. No.
Particulars
Table
No.
Page
No.
1
Trends in FII investment
1.1 32
2
Monthly Trends of FIIs for the Year 2007-08
1.2 36
3
Correlation of FII With Nifty
1.3 38
4
Correlation Of FII With Sensex
1.4 39
5
Coefficient Of Determination Of FII With Nifty
1.5 40
6
Coefficient Of Determination Of FII With Sensex
1.6 41
7
T-statistics- FII and Nifty
1.7 42
8
T-statistics- FII and Sensex
1.8 43

LIST OF CHARTS

Sr. No.
Particulars
Table
No.
Page
No.
1
SOURCES OF FII IN INDIA
1.1 33
2
GROWTH OF FII INVESTMENTS IN INDIA
1.2 36
3
TRENDS IN YEARLY GROSS PURCHASES
1.3 38














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1.1 Theoretical Background
When people think about globalization, they often first think of the increasing
volume of trade in goods and services. Trade flows are indeed one of the
most visible aspects of globalization. But many analysts argue that
international investment is a much more powerful force in propelling the world
toward closer economic integration. Investment, often alters entire methods of
production through transfers of know-how, technology and management
techniques, and thereby initiates much more significant change than the
simple trading of goods.
Over the past ten years, foreign investment has grown at a significantly more
rapid pace than either international trade or world economic production
generally. From 1070 to 1907, international capital flows, a key indication of
investment across borders, grew by almost 25% annually, compared to the
5% growth rate of international trade. This investment has been a powerful
catalyst for economic growth.
But as with many of the other aspects of globalisation, foreign investment is
raising many new questions about economic, cultural and political
relationships around the world. Flows of investment and the rules that govern
or fail to govern it can have profound impacts upon such diverse issues as
economic development, environmental protection, labour standards and
economic stability.
1.2 Forms of Foreign Investment
International investment or capital flows fall into four principal categories:
Commercial loans: These primarily take the form of loans by banks to
foreign businesses or governments.
Official flows: This category refers generally to the forms of development
assistance given by developed countries to developing ones.
Foreign Direct Investment (FDI): This category refers to international
investment in which the investor obtains a lasting interest in an enterprise in
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another country. FDI is calculated to include all kinds of capital contributions,
such as the purchases of stocks, as well as the reinvestment of earnings by a
wholly owned company incorporated abroad (subsidiary), and the lending of
funds to a foreign subsidiary or branch. The reinvestment of earnings and
transfer of assets between a parent company and its subsidiary often
constitutes a significant part of FDI calculations. An investor's earnings on FDI
take the form of profits such as dividends, retained earnings, management
fees and royalty payments.
Foreign Portfolio Investment (FPI): FPI is a category of investment
instruments that are more easily traded, may be less permanent, and do not
represent a controlling stake in an enterprise. These include investments via
equity instruments (stocks) or debt (bonds) of a foreign enterprise which does
not necessarily represent a long-term interest. The returns that an investor
acquires on FPI usually take the form of interest payments or non-voting
dividends. Investments in FPI that are made for less than one year are
distinguished as short-term portfolio flows.
Until the 1070s, commercial loans from banks were the largest source of
foreign investment in developing countries. However, since that time, the
levels of lending through commercial loans have remained relatively constant,
while the levels of global FDI and FPI have increased dramatically. Over the
period 1991 - 1907, FDI and FPI comprised 90% of the total capital flows to
developing countries.
Similarly, when viewed against the tremendous and growing volume of FDI
and FPI, the funds provided in the past by governments through official
development assistance, or lending by commercial banks the World Bank or
IMF, are diminishing in importance with each passing year. When one talks
about the recent phenomenon of globalization therefore, one is referring in
large part to the effects of FDI and FPI, and these two instruments will
therefore be the primary focus of this issue brief.

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1.3 Differences Between Portfolio and Direct Investment
One of the most important distinctions between Portfolio and Direct
investment to have emerged from this young era of globalisation is that
portfolio investment can be much more volatile. Changes in the investment
conditions in a country or region can lead to dramatic swings in portfolio
investment. For a country on the rise, FPI can bring about rapid development,
helping an emerging economy move quickly to take advantage of economic
opportunity, creating many new jobs and significant wealth. However, when a
country's economic situation takes a downturn, sometimes just by failing to
meet the expectations of international investors, the large flow of money into a
country can turn into a stampede away from it.
By contrast, because FDI implies a controlling stake in a business, and often
connotes ownership of physical assets such as a equipment, buildings and
real estate, FDI is more difficult to pull out or sell off. Consequently, direct
investors may be more committed to managing their international
investments, and less likely to pull out at the first sign of trouble.
This volatility has effects beyond the specific industries in which foreign
investments have been made. Because capital flows can also affect the
exchange rate of a nation's currency, a quick withdrawal of investment can
lead to rapid decline in the purchasing power of a currency, rapidly rising
prices (inflation) and then panic buying to avoid still higher prices. In short,
such quick withdrawals can produce widespread economic crisis. This was
partly the case in the Asian Economic Crisis that began in 2006. Although the
economic turmoil began as a result of some broader shifts in international
economic policy and some serious problems within the banking and financial
sectors of the affected East Asian nations, the capital flight which ensued --
some compared it to the great financial panics which took place in the United
States during the 19th century -- significantly exacerbated the crisis.


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Why Do Companies Invest Overseas?
Companies choose to invest in foreign markets for a number of reasons, often
the same reasons for expanding their operations within their home country.
The economist John Dunning has identified four primary reasons for corporate
foreign investments:
Market seeking - Firms may go overseas to find new buyers for goods and
services. Market-seeking may happen when producers have saturated sales
in their home market, or when they believe investments overseas will bring
higher returns than additional investments at home. This is often the case with
high technology goods.
Resource seeking - Put simply, a company may find it cheaper to produce its
product in a foreign subsidiary- for the purpose of selling it either at home or in
foreign markets. The foreign facility may be able to obtain superior or less
costly access to the inputs of production (land, labor, capital and natural
resources) than at home.
Strategic asset seeking - Firms may seek to invest in other companies
abroad to help build strategic assets, such as distribution networks or new
technology. This may involve the establishment of partnerships with other
existing foreign firms that specialize in certain aspects of production.
Efficiency seeking - Multinational companies may also seek to reorganize
their overseas holdings in response to broader economic changes.
Fluctuations in exchange rates may also change the profit calculations of a
firm, leading the firm to shift the allocation of its resources.

Foreign Investment Increased so Dramatically in recent Decades?
As stated earlier in this brief, international investment levels have exploded in
recent decades. These increases in the flows of foreign investment have
themselves marked a new and distinct phenomenon in the era of
globalisation. Several factors have helped drive this growth:
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1) Technology. Telecommunications and transportation advances have
simply made it easier to do business across large distances. As former
President Clinton once pointed out, in the 1960s, transatlantic telephone lines
could only accommodate 80 simultaneous calls between Europe and the
United States. Today, satellites and other telecommunications infrastructure
can handle one million calls at one time.
Fax machines, email and the drop in the cost of air travel have also
contributed significantly to the growth of FDI. As you can imagine, a business
owner might think twice about trying to run an affiliate in a foreign country if
communication with that office were not both easy and cheap. Changes in
practices tend to be driven by changes in capabilities, and these new methods
to communicate have unquestionably helped drive much of the subsequent
desire to promote economic integration.
2) The lure of higher profits. Many countries in East Asia had built their
phenomenal growth on a foundation based on greater integration into the
international economy, particularly emphasizing export-led growth. Investors
from around the world realized that access to East Asian markets and their
trading partners might help them attain much higher returns on their
investments than they could obtain at home.
3) Financial liberalization. Prior many countries imposed strict limits on the
rights of companies and individuals to invest overseas, to purchase foreign
securities, or even to hold foreign currencies. Many of these restrictions were
put in place following the Great Depression of the 1930's, which had produced
volatile movements of capital, triggering financial panics in some cases.
Financial liberalization has been the most direct, and probably the single
biggest, factor accounting for the growth of international investment flows over
the past several decades.



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1.4 Factors Influencing Foreign Investment Decisions
Now that you understand the basic economic reasons why companies choose
to invest in foreign markets, and what forms that investment may take, it is
important to understand the other factors that influence where and why
companies decide to invest overseas. These other factors relate not only to
the overall economic outlook for a country, but also to economic policy
decisions taken by foreign governments, aspects that can be very political and
controversial.
The policy frameworks relating to FDI and FPI are relatively similar, although
there are a few differences.
The determinants of FPI are somewhat complex because portfolio investment
earnings are more likely to be tied to the broader macroeconomic indicators of
a country, such as overall market capitalization of an economy, they can be
more sensitive to factors such as:
high national economic growth rates
exchange rate stability
general macroeconomic stability
levels of foreign exchange reserves held by the central bank
general health of the foreign banking system
liquidity of the stock and bond market
interest rates
In addition to these general economic indicators, portfolio investors also look
at the economic policy environment as well, and especially at factors such as:
the ease of repatriating dividends and capital
taxes on capital gains
regulation of the stock and bond markets
the quality of domestic accounting and disclosure systems
the speed and reliability of dispute settlement systems

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2.1 Global Level Portfolio Flows:
International portfolio flows, as opposed to foreign direct investment (FDI)
flows, refer to capital flows made by individuals or investors seeking to create
an internationally diversified portfolio rather than to acquire management
control over foreign companies. Diversifying internationally has long been
known as a way to reduce the overall portfolio risk and even earn higher
returns. Investors in developed countries can effectively enhance their
portfolio performance by adding foreign stocks particularly those from
emerging market countries where stock markets have relatively low
correlations with those in developed countries.

International portfolio flows are largely determined by the performance of the
stock markets of the host countries relative to world markets. With the
opening of stock markets in various emerging economies to foreign investors,
investors in industrial countries have increasingly sought to realize the
potential for portfolio diversification that these markets present.

It is likely that for quite a few years to come, FII flows would increase with
global integration. The main question is whether capital flew in to these
countries primarily as a result of changes in global (largely US) factors or in
response to events and indicators in the recipient countries like its credit
rating and domestic stock market return. The answer is mixed both global
and country-specific factors seem to matter, with the latter being particularly
important in the case of Asian countries and for debt flows rather than equity
flows.






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2.2 National Level (in India)

INVESTMENT IN INDIAN MARKET
India is believed to be a good investment despite political uncertainty,
bureaucratic hassles, shortages of power and infrastructure deficiencies. India
presents a vast potential for overseas investment and is actively encouraging
the entrance of foreign players into the market. No company, of any size,
aspiring to be a global player can, for long ignore this country, which is
expected to become one of the top three emerging economies.

Success in India
Success in India will depend on the correct estimation of the country's
potential; underestimation of its complexity or overestimation of its possibilities
can lead to failure. While calculating, due consideration should be given to the
factor of the inherent difficulties and uncertainties of functioning in the Indian
system. Entering India's marketplace requires a well-designed plan backed by
serious thought and careful research. For those who take the time and look to
India as an opportunity for long-term growth, not short-term profit- the trip will
be well worth the effort.

Market potential
India is the fifth largest economy in the world (ranking above France, Italy, the
United Kingdom, and Russia) and has the third largest GDP in the entire
continent of Asia. It is also the second largest among emerging nations.
(These indicators are based on purchasing power parity). India is also one of
the few markets in the world, which offers high prospects for growth and
earning potential in practically all areas of business. Despite the practically
unlimited possibilities in India for overseas businesses, the world's most
populous democracy has, until fairly recently, failed to get the kind of
enthusiastic attention generated by other emerging economies such as China.




19

Lack of enthusiasm among investors
The reason being, after independence from Britain 50 years ago, India
developed a highly protected, semi-socialist autarkic economy. Structural and
bureaucratic impediments were vigorously fostered, along with a distrust of
foreign business. Even as today the climate in India has seen a sea change,
smashing barriers and actively seeking foreign investment, many companies
still see it as a difficult market. India is rightfully quoted to be an incomparable
country and is both frustrating and challenging at the same time. Foreign
investors should be prepared to take India as it is with all of its difficulties,
contradictions and challenges.

Developing a basic understanding or potential of the Indian market
Envisaging and developing a Market Entry Strategy and implementing these
strategies when actually entering the market are three basic steps to make a
successful entry into India. The Indian middle class is large and growing;
wages are low; many workers are well educated and speak English; investors
are optimistic and local stocks are up; despite political turmoil, the country
presses on with economic reforms. But there is still cause for worries-
Infrastructure hassles.

The rapid economic growth of the last few years has put heavy stress on
India's infrastructure facilities. The projections of further expansion in key
areas could snap the already strained lines of transportation unless massive
programs of expansion and modernization are put in place. Problems include
power demand shortfall, port traffic capacity mismatch, poor road conditions
(only half of the country's roads are surfaced) and low telephone penetration.

Diverse Market
The Indian market is widely diverse. The country has 17 official languages, 6
major religions, and ethnic diversity as wide as all of Europe. Thus, tastes and
preferences differ greatly among sections of consumers. Therefore, it is
advisable to develop a good understanding of the Indian market and overall
economy before taking the plunge.

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2.3 Current Trends
FII registration and investment are mainly governed by SEBI (FII)
Regulations, 1995.

ELIGIBILITY FOR REGISTRATION AS FII: Following entities / funds are
eligible to get registered as FII:
1. Pension Funds
2. Mutual Funds
3. Insurance Companies
4. Investment Trusts
5. Banks
6. University Fund s
7. Endowments
8. Foundations
9. Charitable Trusts / Charitable Societies
Further, following entities proposing to invest on behalf of broad based
funds(a fund established or incorporated outside India, which has at least
twenty investors with no single individual investor holding more than 10%
shares or units of the fund) , are also eligible to be registered as FIIs:
1. Asset Management Companies
2. Institutional Portfolio Managers
3. Trustees
4. Power of Attorney Holders

INVESTMENT OPPORTUNITIES FOR FIIs
The following financial instruments are available for FII investments
a) Securities in primary and secondary markets including shares, debentures
and warrants of companies, unlisted, listed or to be listed on a recognized
stock exchange in India;
b) Units of mutual funds;
c) Dated Government Securities;
d) Derivatives traded on a recognized stock exchange ;
e) Commercial papers.
Investment limits on equity investments
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a) FII, on its own behalf, shall not invest in equity more than 10% of total
issued capital of an Indian company.
b) Investment on behalf of each sub-account shall not exceed 10% of total
issued capital of an India company.
c) For the sub-account registered under Foreign Companies/Individual
category, the investment limit is fixed at 5% of issued capital.
These limits are within overall limit of 24% / 49 % / or the sectorial caps a
prescribed by Government of India / Reserve Bank of India.

Investment limits on debt investments
The FII investments in debt securities are governed by the policy if the
Government of India. Currently following limits are in effect:
For FII investments in Government debt, currently following limits are
applicable:

For corporate debt the investment limit is fixed at US $ 500 million.

TAXATION
The taxation norms available to a FII is shown in the table below.
Nature of Income Tax Rate
Long-term capital gains 10%
Short-term capital gains 30%
Dividend Income Nil
Interest Income 20%

Long term capital gain: Capital gain on sale of securities held for a period of
more than one year.
Short term capital gain: Capital gain on sale of securities held for a period of
less than one year.




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2.4 Pestal Analysis

1. Political:
The Capital market of India is very vulnerable. India has been politically
instable in the past but it is a little politically stable now-a-days.the political
instability of the country has a very strong impact on the capital market. The
share market of India changes as the political changes took place. The BSE
Index, SENSEX goes up and down with any kind of small and big political
news, like, if there is news that a particular political party has withdrawn its
support from the ruling party, and then the capital market will go down with a
bang. The capital market of India is too weak and is based on speculations.
The political stability of the country is very important for the stability and
growth of capital market in India. The political imbalance or balance of the
country is the major factor in deciding the capital market of India. The political
factors include:
Employment laws
Tax policy
Trade restrictions and tariffs
Political stability



2. Economical:
The economic measures taken by the government of India has a very strong
relationship with the capital market. Whenever the annual budget is
announced the capital market goes up and down with the economic policies of
the government .If the policies are supportive to the companies then the
capital market takes it positively and if there is any other policy that is not
supportive and it is not welcomed then the capital market goes down. Like, in
the case of allocation of 3-G spectrum, those companies that got the license
for 3-G, they witnessed sharp growth in their share values so the economic
policies play a major part in the growth and decline of the capital market and
again if there is relaxation on any kind of taxes on items of automobileindustry
23

then the share of automobile sector goes up and virtually strengthen the
capital market .The economic factors include:
Inflation rate
Economic growth
Exchange rates
Interest rates

3. Social:
India is a country of unity in diversity .India is socially rich but the capital
market is not very attached with the social factors .Yes, there is some relation
between the social factors with the capital market. If there is any big social
factor then to some extent it affects the capital market but small social factors
dont impact at all. Like, there was opposition of reliance fresh in many cities
and many stores were closed. The share prices of the reliance fresh went
down but the impact was on and individual firm there was not much impact on
the capital market on a whole the social factors have not much of impact on
the capital market in India. The social factors include:
Emphasis on safety
Career attitudes
Population growth rate
Age distribution

4. Technological:
The technological factors have not that much effect on the capital market.
India is technological backward country. Same as social factors, technological
factor can have an effect on an individual form but it cannot have a big impact
on a whole of capital market. The Bajaj got a patent on its dts-i technology,
and launched it in its new bike but it does not effect on capital market. The
technological change in India is always on a lower basis and it doesnt effect
on country as a whole. The technological factors include
R&D activity
Technology incentives
Rate of technological change
24

5. Environmental factors:
Initially the environmental factors dont play a vital role in the capital market.
But the time has changed and people are more eco-friendly. This is really
bothering them that if any firm or industry is environment friendly or not. An
increasing number of people, investors, and corporate executives are paying
importance to these facts; the capital markets still see the environment as a
liability. They belie that it is of no use for their strategy. The environmental
performance is even under-valued by the markets.

6. Legal factors:
Legal factors play an important role in the development and sustain the capital
market. Legal issues relating to any industry or firm decides the fate of the
capital market. If the govt. of India or the parliament introduces a new law that
can affect the running of the industry then the industry will be de-motivated
and this demonization will lead to the demonization of the investors and will
result in the fall of capital market. Like after the Hardhat Mehta scam, new
rules and regulations were introduced like PAN card was made necessary for
trading, if any investor was investing too much money in a small firm, then the
investors were questionedetc.
These regulations were meant to maintain transparency in the capital market,
but at that time, investment was discouraged. Legal factors are necessary for
the improvement and stability of the capital market.









25

2.5 Major Player
RESERVE BANK OF INDIA:
India's Central Bank - the RBI - was established on 1 April 1935 and was
nationalized on 1 January 1949. Some of its main objectives are regulating
the issue of bank notes, managing India's foreign exchange reserves,
operating India's currency and credit system with a view to securing monetary
stability and developing India's financial structure in line with national socio-
economic objectives and policies.

The RBI acts as a banker to Central/State governments, commercial banks,
state cooperative banks and some financial institutions. It formulates and
administers monetary policy with a view to promoting stability of prices while
encouraging higher production through appropriate deployment of credit. The
RBI plays an important role in maintaining the exchange value of the Rupee
and acts as an agent of the government in respect of India's membership of
IMF. The RBI also performs a variety of developmental and promotional
functions.

The first concern of a central bank is the maintenance of a soundly based
commercial banking structure. While this concern has grown to comprehend
the operations of all financial institutions, including the several groups of non-
bank financial intermediaries, the commercial banks remain the core of the
banking system. A central bank must also cooperate closely with the national
government. Indeed, most governments and central banks have become
intimately associated in the formulation of policy.

They are often responsible for formulating and implementing monetary and
credit policies, usually in cooperation with the government. they have been
established specifically to lead or regulate the banking system.





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SECURITUIES AND EXCHANGE BOARD OF INDIA:

In 1078 the Securities and Exchange Board of India (SEBI) was established
by the Government of India through an executive resolution, and was
subsequently upgraded as a fully autonomous body (a statutory Board) in the
year 1992 with the passing of the Securities and Exchange Board of India Act
(SEBI Act) on 30th January 1992. In place of Government Control, a statutory
and autonomous regulatory board with defined responsibilities, to cover both
development & regulation of the market, and independent powers have been
set up.

The basic objectives of the Board were identified as:
to protect the interests of investors in securities;
to promote the development of Securities Market;
to regulate the securities market and
for matters connected therewith or incidental thereto.
Since its inception SEBI has been working targetting the securities and is
attending to the fulfillment of its objectives with commendable zeal and
dexterity. The improvements in the securities markets like capitalization
requirements, margining, establishment of clearing corporations etc. reduced
the risk of credit and also reduced the market.

SEBI has introduced the comprehensive regulatory measures, prescribed
registration norms, the eligibility criteria, the code of obligations and the code
of conduct for different intermediaries like, bankers to issue, merchant
bankers, brokers and sub-brokers, registrars, portfolio managers, credit rating
agencies, underwriters and others. It has framed bye-laws, risk identification
and risk management systems for Clearing houses of stock exchanges,
surveillance system etc. which has made dealing in securities both safe and
transparent to the end investor.

Another significant event is the approval of trading in stock indices (like S&P
CNX Nifty & Sensex) in 2000. A market Index is a convenient and effective
product because of the following reasons:
27

It acts as a barometer for market behaviour;
It is used to benchmark portfolio performance;
It is used in derivative instruments like index futures and index options;
It can be used for passive fund management as in case of Index
Funds.
Two broad approaches of SEBI is to integrate the securities market at the
national level, and also to diversify the trading products, so that there is an
increase in number of traders including banks, financial institutions, insurance
companies, mutual funds, primary dealers etc. to transact through the
Exchanges. In this context the introduction of derivatives trading through
Indian Stock Exchanges permitted by SEBI in 2000 AD is a real landmark.

BOMBAY STOCK EXCHANGE:
Of the 22 stock exchanges in the country, Mumbai's (earlier known as
Bombay), Bombay Stock Exchange is the largest, with over 6,000 stocks
listed. The BSE accounts for over two thirds of the total trading volume in the
country. Established in 1875, the exchange is also the oldest in Asia. Among
the twenty-two Stock Exchanges recognised by the Government of India
under the Securities Contracts (Regulation) Act, 1956, it was the first one to
be recognised and it is the only one that had the privilege of getting
permanent recognition abs-initio.

Approximately 70,000 deals are executed on a daily basis, giving it one of the
highest per hour rates of trading in the world. There are around 3,500
companies in the country which are listed and have a serious trading volume.
The market capitalization of the BSE is Rs.5 trillion. The BSE `Sensex' is a
widely used market index for the BSE.

The main aims and objectives of the BSE is to provide a market place for the
purchase and sale of security evidencing the ownership of business property
or of a public or business debt. It aims to promote, develop and maintain a
well-regulated market for dealing in securities and to safeguard the interest of
members and the investing public having dealings on the Exchange. It helps
industrial development of the country through efficient resource mobilization.
28

To establish and promote honourable and just practices in securities
transactions

BSE Sensex
The BSE Sensex is a value-weighted index composed of 30 companies with
the base April 1979 = 100. It has grown by more than four times from January
1990 till date. The set of companies in the index is essentially fixed. These
companies account for around one-fifth of the market capitalization of the
BSE.


NATIONAL STOCK EXCHANGE OF INDIA:
The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges,
which recommended promotion of a National Stock Exchange by financial
institutions (FIs) to provide access to investors from all across the country on
an equal footing. Based on the recommendations, NSE was promoted by
leading Financial Institutions at the behest of the Government of India and
was incorporated in November 1992 as a tax-paying company unlike other
stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts
(Regulation) Act, 1956 in April 1993, NSE commenced operations in the
Wholesale Debt Market (WDM) segment in June 1994. The Capital Market
(Equities) segment commenced operations in November 1994 and operations
in Derivatives segment commenced in June 2000.

S&P CNX Nifty
S&P CNX Nifty is a well-diversified 50 stock index accounting for 23 sectors of
the economy. It is used for a variety of purposes such as benchmarking fund
portfolios, index based derivatives and index funds.

S&P CNX Nifty is owned and managed by India Index Services and Products
Ltd. (IISL), which is a joint venture between NSE and CRISIL. IISL is India's
29

first specialised company focused upon the index as a core product. IISL have
a consulting and licensing agreement with Standard & Poor's (S&P), who are
world leaders in index services.
The average total traded value for the last six months of all Nifty stocks
is approximately 58% of the traded value of all stocks on the NSE
Nifty stocks represent about 60% of the total market capitalization as
on March 31, 2005.
Impact cost of the S&P CNX Nifty for a portfolio size of Rs.5 million is
0.07%
S&P CNX Nifty is professionally maintained and is ideal for derivatives
trading























30



3
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3.1 Company Information:

The firm was corporatized in the name of Tirthraj Securities Pvt. Ltd. in the
year 1997. The company is a Trading and Clearing Member Broker registered
with both the exchanges (BSE/NSE) Under Cash, F&O Segments and
Registered Trading Member under Currency Derivative Segment. the
Company has wellfurnished/equipped offices in Mumbai & other cities in India.
Based on the principles of team work and collective knowledge CDSL has its
own research department run by highly experienced and qualified
professionals who pride themselves in providing on-line news research and
analysis.Today the needs of the increasing Demit holdings of the clients are
serviced by Asset Alliance Securities Pvt. Ltd., a depository participant
(CDSL). Besides, Mutual Fund Distribution, IPO participation for the clients
and Institutional broking are also provided by this Company. The commodity
market is well serviced by Tirthraj Securities Pvt. Ltd.We understand the
increasing needs of the market and the demands of our clients and we are
committed and disciplined to give our best to satisfy these needs.

Tirthraj Securities Pvt. Ltd.
Virochana Securities Pvt. Ltd. Was incorporated in the year May' "2006.

The Markets are growing and so are the various possibilities of investment.
Today, the market regulator has eased restrictions on futures trading in
Securities spread over Agro Securities, Bullions and Base Metals. Keeping in
step with the growing investment potential and the need of different asset
class.

Virochana Securities Pvt. Ltd. Was renamed to Tirthraj Securities Pvt. Ltd.
Which got established in the year August 2008 to provide services in
Securities and Futures Markets.
We also provide with Daily Morning informative updates in terms of reports,
global events and also daily technical calls for daily trading and positional
trades with fundamental reasons.

32

Mission:-
To succeed... you need to find something to hold on to, something to
motivate you, something to inspire you.
Milestones

December 09, 1999 Bombay Stock Exchange Ltd Cash
June 20, 2000 Bombay Stock Exchange Ltd - F&O
November 21, 2000 National Stock Exchange of India Ltd Cash
June 03, 2005 CDSL * (*Asset Alliance Securities Pvt. Ltd.)
February 06, 2006 National Stock Exchange of India Ltd - F&O
September 15, 2008
National Stock Exchange of India Ltd - Currency
Derivatives
September 18, 2008
Bombay Stock Exchange Ltd - Currency
Derivatives
June 26, 2009 MCX Stock Exchange Ltd.
September 09, 2009
SEBI Registration for Portfolio Management
service..




















33

3.2 Membership In

Capital Market




Commodities derivatives




Depository participation of :












CentralDepositoryServices(India)Limited
INSURANCE REGULATORY AND DEVELOPMENT
AUTHORITY
Association of Mutual Funds in India
34

3.3 Swot Analysis
Strengths:
MSFL WITH 1, 00,000 Plus customer base and good network to handle the
transitions satisfying them is the major strength.
1. Focused on delivering quality content
2. Technological innovations
3. Successful Track Records
4. Brand Equity
Weaknesses:
1. No fixed formula to achieve ratings as audience views keep changing.
2. Government policies relating to broadcast license.
3. Currently addressing mainly Hindi programs.
Opportunities:
1. Emergence of new channels across all languages.
2. Increasing no. of TV homes
2. The competition and increasing prices may adversely affect our ability to
acquire desired programming and artistic talent.
3. Entrance of small players.
4. Reduction in shelf life of programs.
5. Rapid re-shuffling of producers due to non-attainment of the desired TRPs.
6. Changing tastes of the viewer's audience
35

Threats:

Tirthraj is facing competition from the new entrant like Karvey Securities and
many new and local players.

1. Competition
2. Economic slowdown


























36



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Balance of Payments is a statistical record of ALL of a country's intial
transactions with the rest of the world, over a certain time period (quarter or
year), using double-entry bookkeeping. (private transactions and government
transactions).
Examples of International Transactions in BALANCE OF PAYMENT:
1. Imports (M) and Exports (X) of a) goods/merchandise and b) services
2. Cross-border Financial flows (investments in foreign stocks and bonds,
real estate, interest/Dividend income, business investment, FDI, etc.)
3. Foreign Aid

BALANCE OF PAYMENT ACCOUNTS
1. CURRENT ACCOUNT
Exports (X) / Imports (M) of: a) Merchandise, b) Services, c) Factor income
and d) Unilateral (one way) government transfers.
Balance on Current Account (CA) = X + M + Net Transfer

2. CAPITAL ACCOUNT
Record of the Sales of Indian Assets (Stocks, bonds, real estate, businesses)
to foreigners, X of assets, resulting in a capital inflow, or a Credit (cash
inflow); and the Purchases of Foreign assets by Indians, M of assets, capital
outflow, Debit (cash outflow).
Specifically:

a. Foreign Direct Investment (FDI)
Refers to international investment in which the investor obtains a lasting
interest in an enterprise in another country. Most concretely, it may take the
form of buying or constructing a factory in a foreign country or adding
improvements to such a facility, in the form of property, plants or equipment.


38

b. Portfolio Investment:
Purchases/sales of stocks, bonds, notes, mutual funds, money market
securities, options, etc., in foreign capital markets not involving controlling
interest. International portfolio investments have increased significantly
recently due to a) relaxation/deregulation of capital controls (increased capital
mobility) and b) a desire for International portfolio diversification (most security
returns have a low correlation among countries, resulting in risk reduction).

3. OTHER ACCOUNTS

HOME BIAS IN PORTFOLIO HOLDINGS
Despite significant and obvious gains from International portfolio
diversification, investors demonstrate a "home bias" and allocate a
disproportionate share of funds to domestic securities.
Excessive transactions costs:
1. Information costs, language barriers
2. Possible unfavorable tax treatment
3. Legal barriers to foreign investment
4. Currency, inflation risk

FII flows and contemporaneous stock returns are strongly correlated in India.
The correlation coefficients between different measures of FII flows and
market returns on the Bombay Stock Exchange during different sample
periods.

Positive correlations have often been held as evidence of FII actions
determining Indian equity market returns. However, correlation itself does not
imply causality.
A positive relationship between portfolio inflows and stock returns is
consistent with at least four distinct theories:
1) the omitted variables hypothesis;
2) the downward sloping demand curve view;
3) the base-broadening theory; and
4) the positive feedback strategy view.
39


The omitted variables view is the classic case of spurious correlation that
the correlated variables, in fact, have no causal relationship between them but
are both affected by one or more other variables missed out in the analysis.

The downward sloping demand curve view contends that foreign investment
creates a buying pressure for stocks in the emerging market in question and
causes stock prices to rise much in the same way as suddenly higher demand
for a commodity would cause its price to rise.

The base-broadening argument contends that once foreigners begin to
invest in a country, the financial markets in that country are now no longer
moved by national economic factors alone but rather begin to be affected by
foreign market movements as well. As the market itself is now affected by
more factors than before, its exposure to domestic shocks decline.
Consequently the risk of the market itself falls, people demand a lower risk
premium to buy stocks, and stock prices rise to higher levels.

Finally the positive feedback view asserts that if investors chase returns in
the immediate past (like the previous day or week) then aggregating their fund
flows over the month can lead to a positive relationship in the
contemporaneous monthly data.
In the present context, both directions of causation are equally plausible.

The positive relationship between market return and FII flows, however,
serves only as a first-pass in understanding the nature of such flows and their
implications for the Indian markets. Since the FII flows essentially serve to
diversify the portfolio of foreign investors, it is only normal to expect that
several factors both domestic as well as external to India are likely to
affect them along with the expected stock returns in India. The declining world
interest rates have been among the important push factors for international
portfolio flows in the early 90s. The usual suspects in the literature include:
US and world equity returns, changes in interest rates, stock market volatility,
some measure of the country risk and the exchange rate. Other factors that
40

may affect FII flows Country risk measures, that incorporate political and other
risks in addition to the usual economic and financial variables, may be
expected to have an impact on portfolio flows to India though they are likely to
matter more in the case of FDI flows.






























41






















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5.1 Problem Statement:
In this research an effort has been made to develop an understanding of the
influence of the FIIs in the Indian equity market. The Foreign Institutional
Investors (FIIs) have emerged as important players in the Indian equity
market in the recent past. This paper makes an attempt to understand
whether there exists a relationship between FII and Equity Market returns in
India.

5.2 Objective of the study
Analyse the trends of Foreign Investment flows and Foreign Institutional
Inflows.
Analyse the Yearly trends of FII purchases, FII sales and Net Investment.
Analyse the reason for the major decline of Net Investment in the year
1907-99.
Examine whether FIIs have any influence on Equity Stock Market.



5.3 Research design

SOURCES OF DATA
The main source of obtaining necessary data for the study was Secondary
Data. This study is empirical in nature and hence secondary data is used to
conduct the research. The data was collected from the Internet by exploring
the Secondary sources available on websites.
Secondary Data: The secondary data constitutes of daily FII flows data which
was collected from Money Control and Equity Master, the daily returns of
SENSEX and NIFTY from BSE and NSE websites respectively. The trends in
FII flows from the RBI website and information on FII from SEBI.





43

PLAN OF ANALYSIS
The data gathered from various sources were primarily studied and necessary
data was sorted out sequentially keeping in mind the procedure of the study.
The analysis has been made by, correlating the FII purchases, sales and net
investment with equity market returns to identify whether a relation exists
between them. Findings are included which transmits the important points,
which were gathered from the study.

METHODOLOGY
1.Form a testable hypothesis
2. Collect relevant data to test hypothesis
3. Perform statistical analysis.
4. Interpret the results.
HYPOTHESIS
Null Hypothesis (Ho): There is no influence of FIIs on the Stock indexes.
Alternative Hypothesis (Ha): There is an influence of FIIs on Stock indexes.

If we reject the Ho, then we accept the Ha, setting the significance level to 5%
and 1% at Degree of Freedom = n-2.

SCOPE OF THE STUDY
The report examines The Influence of Foreign Institutional Investments on
Equity Stock Market in India. The scope of the research comprises of
information derived from secondary data from various websites. The various
information and statistics were derived from the websites of BSE, NSE,
Money Control, RBI and SEBI. Sensex and Nifty was a natural choice for
inclusion in the study, as it is the most popular market indices and widely used
by market participants for benchmarking.




44

LIMITATIONS OF THE STUDY
As the time available is limited and the subject is very vast the study is mainly
focused on identifying whether there does exist a relationship between FIIs
and Indian Equity Stock Market.
The study is general.
It is mainly based on the data available in various websites;
The inferences made is purely from the past years performance;
There is no particular format for the study;
Sufficient time is not available to conduct an in-depth study;
























45

6
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ANALYSIS AND INTERPRETATION
Portfolio flows often referred to as hot money are notoriously volatile
compared to other forms of capital flows. Investors are known to pull back
portfolio investments at the slightest hint of trouble in the host country often
leading to disastrous consequences to its economy. They have been blamed
for exacerbating small economic problems in a country by making large and
concerted withdrawals at the first sign of economic weakness.

TRENDS IN FII INVESTMENT IN INDIA

1.1 TABLE : Trends in FII investment

Year
FII
PURCHASE FII SALES FII NET FII NET CUM FII NET
in crores in crores in crores US$ million US$ million
2002-03 5593 466 5126 1634 1638
2003-04 7631 2835 4796 1528 3167
2013-05 9694 2752 6942 2036 5202
2005-06 15554 6979 8575 2432 7634
2006-07 18695 12737 5958 1649 9284
2007-08 16115 17699 -1584 -386 8807
2008-09 56856 46734 10122 2339 11237
2009-10 74051 64116 9934 2160 13396
2010-11 49920 41165 8755 1846 15242
2011-12 47060 44371 2689 562 15804
2012-13 144858 99094 45765 9949 25754

Source: Reserve Bank of India Annual Report 2013




47

INFERENCE: The investments by FIIs have been registering a steady growth
since the opening of the Indian capital markets in September 2001. Their
investments have always been net positive, but for 2007-08, when their sales
were more than their purchases.
It can be observed from the above table that the portfolio investment inflows
have always been on the increase. But the years 2010-11 and 2012-13 saw
some reversal in the trend. From a net inflow of US $ 2.1 billion in 2009-10,
such inflows declined to US $ 1.8 billion in 2009-10, and further dropped to
US $ 0.562 billion in 2011-12. The decline is because of the lower portfolio
inflows, as a result of which the net investment has dropped in these years.
However, this decline witnessed a sharp reversal in the year 2012-13. FIIs
have made a net investment of Rs. 45,764 crores during this year registering
a growth of 1602% over the previous year, creating a record in the history of
FII investment in India. Gross purchases in this year amounted to
Rs.144,857crores, a growth rate of 208% compared to the year before. This
trend continued in April 2013, only to suffer reversal again during May and
June 2013, when the net investment became negative. Fortunately, the year
from July 2013 has been seeing a net positive portfolio flows by FIIs. As of
September 2013, the net FII portfolio investment stands at US $ 27,637
million. If it is so, then increasing the FII investment cap per se will not be
helpful. The country has to work on specific measures to encourage more FII
investments.

CHART : Sources of FII in India


Source: Sebi website
48

INFERENCE: The sources of these FII flows are varied. The FIIs registered
with SEBI come from as many as 28 countries. US-based institutions
accounted for slightly over 41%, those from the UK constitute about 20% with
other Western European countries hosting another 17% of the FIIs). It is,
however, instructive to bear in mind that these national affiliations do not
necessarily mean that the actual investor funds come from these particular
countries. Given the significant financial flows among the industrial countries,
national affiliations are very rough indicators of the home of the FII
investments. In particular institutions operating from Luxembourg, Cayman
Islands or Channel Islands, or even those based at Singapore or Hong Kong
are likely to be investing funds largely on behalf of residents in other
countries. Nevertheless, the regional breakdown of the FIIs does provide an
idea of the relative importance of different regions of the world in the FII flows.

CHART : GROWTH OF FII INVESTMENTS IN INDIA







0
20000
40000
60000
80000
100000
120000
140000
160000
Chart Title
FII PURCHASE FII SALES
49

INFERENCE: The trickle of FII flows to India that began in January 2002 has
gradually expanded to an average monthly inflow of close to Rs. 1900 crores
during the first six months of 2010. By June 2010, over 500 FIIs were
registered with SEBI. The total amount of FII investment in India had
accumulated to a formidable sum of over Rs.50,000crores during this time. In
terms of market capitalization too, the share of FIIs has steadily climbed to
about 9% of the total market capitalization of BSE (which, in turn, accounts for
over 90% of the total market capitalization in India).

CHART: TRENDS IN YEARLY GROSS PURCHASES





INFERENCE:On observation of the above chart of trends in yearly Gross
Purchases, the Gross Purchases of FIIs in India registered a record of
Rs.144,857crores in the year 2003-04, a growth rate of 208% compared to
the previous year 2002-03. This trend continued in April 2013, only to suffer
reversal again during May and June 2013, when the net investment became
negative.

0
20000
40000
60000
80000
100000
120000
140000
160000
2
0
0
2
-
0
3

2
0
0
3
-
0
4
2
0
1
3
-
0
5
2
0
0
5
-
0
6
2
0
0
6
-
0
7
2
0
0
7
-
0
8
2
0
0
8
-
0
9
2
0
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9
-
1
0
2
0
1
0
-
1
1
2
0
1
1
-
1
2
2
0
1
2
-
1
3

FII PURCHASE in
crores
50

INFERENCE: In the above chart we can see that during the year 2003-04 FIIs
Gross Sales amounted an increase Rs.99094 crores when compared to Rs.
44371 crores. The FIIs Gross Sales shows an upward trend with reference to
the base year of 1993-94 when the Gross Sales where only Rs. 466 crores.



TABLE 1.2: Monthly Trends of FIIs for the Year 2007-08

Month Purchases Sales Net Net
(Rsmn) (Rsmn) (Rsmn) (US$ mn)
Apr-07 11422 11756 -335 -8.4
May-07 8253 13284 -5031 -124.3
Jun-07 8023 16072 -8049 -190.5
Jul-07 13007 12154 944 22.2
Aug-07 7932 11783 -3851 -90.1
Sep-07 14381 12458 1923 45.2
Oct-07 10737 16470 -5733 -135.4
Nov-07 10391 0745 546 12.9
Dec-07 11089 8789 2300 104.8
Jan-08 16355 11894 4462 104.8
Feb-08 16477 13084 3393 79.8
Mar-08 25207 23973 1233 29


A major factor which led to continuous outflow of funds during the middle and
end of the year 2007 was the worsening outlook on the emerging markets.
Credit worthiness of almost all the South-east Asian nations was severely
damaged by the crises which started in July 2006. As a result, the FIIs were
facing heavy redemption pressures from the Emerging Markets Funds. The
stock markets in all these countries fell continuously from March 2007 till
about September 2007. The integration of the Indian capital markets with the
51

international markets thus spilled over to Indian markets as well. However, the
net outflow from the Indian markets was much lower than the other Asian
countries. A further indication of the integration of the Indian markets can be
seen from the upsurge in the valuations and funds inflows during the first
quarter of 2008, when all the other Asian countries have also seen rising trend
in stocks indices.
The sluggishness in investment in the emerging markets was exacerbated by
the fact that throughout 2007-08, US and European markets showed
historically high valuations, and the expectations of further rise because of the
strong economic indicators there which led to reduced allocations elsewhere.

INFLUENCE OF FII ON THE EQUITY INDEXES OF INDIA

We are interested in testing a hypothesis about the influence of FII in Equity
Stock Market by correlating Gross Purchases, Gross Sales and Net
Investment with Nifty and Sensex. T-test is conducted at 1% and 5%
significance. Statistical significance is way to measure the likelihood that
chance explains the results.

FORMULATING A HYPOTHESIS:
Null Hypothesis (Ho): there is no influence of FIIs on the Stock indexes.
Alternative Hypothesis (Ha): there is an influence of FIIs on Stock indexes.

If we reject the Ho, then we accept the Ha. Setting the significance level to 5%
and 1%, the null hypothesis would be rejected only when the maximum
number of months show positive correlation.

T-Statistic:
Using T-test is calculated using the following formula:

2
1
2

n
r
r
t
52

When,
-the calculated t>t(0.05,0.01) for (n-2) d.f., variable is significant at 5% level.
-if t<t(0.05) the data are consistent with the hypothesis of an uncorrelated

Conclusion: At the 1% level of stat sig we find that there is an influence of FIIs
on Stock Market Indexes of India.

TABLE 1.3: CORRELATION OF FII WITH NIFTY

MONTH
GROSS
PURCHASES GROSS SALES NET INVESTMENT
APRIL -0.308891015 -0.486299015 -0.122510317
MAY -0.203839618 -0.226174846 0.127555673
JUNE 0.40719847 0.013881057 0.556762421
JULY 0.231397721 -0.008200645 0.352195939
AUGUST -0.296292834 -0.009987101 -0.288696993
SEPTEMBER 0.631541276 0.478957403 0.377141924
OCTOBER -0.107835133 -0.303940405 0.118451125
NOVEMBER 0.103856902 0.232269601 -0.020576251
DECEMBER -0.689594568 -0.692805116 -0.496878284
JANUARY -0.02034654 -0.57330261 0.64885866
FEBRUARY 0.124176605 -0.056354197 0.233709555
MARCH 0.419911809 -0.255570154 0.483718703

FII flows and contemporaneous stock returns are strongly correlated in India.
The correlation coefficients between different measures of FII flows and
market returns on the Bombay Stock Exchange during different sample
periods are shown in Table above. While the correlations are quite high
throughout the sample period, they exhibit a significant rise since the
beginning of the 2008-09. The calculations show that there exists a
relationship between FIIs and Nifty since 6 out of 12 months show positive
correlation in the case of Gross Purchass and 8 out of 12 months indicate a
positive correlation in the case of Net FII Investment and Nifty.
53

TABLE 1.4: CORRELATION OF FII WITH SENSEX

MONTH GROSS PURCHASES GROSS SALES NET INVESTMENT
APRIL -0.267580403 -0.509025858 -0.076211493
MAY -0.184653959 -0.224809346 0.1484205
JUNE 0.405635894 -0.004710378 0.575995013
JULY 0.291205286 0.045396684 0.353391901
AUGUST -0.315900375 -0.033391574 -0.301709231
SEPTEMBER 0.661834837 0.506184274 0.389776394
OCTOBER -0.067640059 -0.311421901 0.18995454
NOVEMBER 0.083505749 0.244942636 -0.057919794
DECEMBER -0.666663184 -0.688620778 -0.46494095
JANUARY 0.02201209 -0.551509386 0.679227006
FEBRUARY 0.00689661 -0.170243004 0.149373722
MARCH 0.417854257 -0.250893125 0.479619465


The behaviour of the foreign portfolio investors matched the behaviour of
Sensex during this period. Net FII investment in the Indian capital markets
started fluctuating sharply during April and it turned negative. Net FII
investment in the Indian stock market was positive from May to July. During
this period, the Sensex and net FII investment showed very high degree of
correlation. For the month of June showed a correlation as high as 0.60. The
months of September, October, November and December shows a declining
trend, the FII investment reversed from that day. On the whole, there exists a
relationship between FIIs and Sensex since 7 out of 12 months show positive
correlation in the case of Gross Purchases and 8 out of 12 months indicate a
positive correlation in the case of Net FII Investment and Sensex.




54

TABLE1.5 : COEFFECIENT OF DETERMINATION OF FII WITH NIFTY

MONTH GROSS PURCHASES GROSS SALES NET INVESTMENT
APRIL 0.095413659 0.236486732 0.015009
MAY 0.04155059 0.051155061 0.01627
JUNE 0.165810594 0.000192684 0.309984
JULY 0.053544905 6.72358E-05 0.124042
AUGUST 0.087789444 9.97422E-05 0.083346
SEPTEMBER 0.398844383 0.229400194 0.142236
OCTOBER 0.011628416 0.09237977 0.014031
NOVEMBER 0.010786256 0.053949168 0.000423
DECEMBER 0.475540669 0.479978929 0.246888
JANUARY 0.000413982 0.328675883 0.421018
FEBRUARY 0.015419829 0.003175796 0.05462
MARCH 0.176325927 0.065316104 0.233984

Coefficient of Determination (R2), ranges from 0 - 1, is always part of the
standard regression output, the important measure of goodness of fit. R2 =
correlation coefficient (r) squared, since the range of r is from -1 to +1,
squaring r forces R2 to fall between 0 and 1. R2 in the above table gives the
percentage (%) of the total variation in Nifty that is explained by the
regression equation, or explained by FIIs. During the month of January the
total variation in Nifty explained by FII amounted to 42% and the remaining
58% is explained by other factors which influence Nifty.








55

TABLE1.6 : COEFFECIENT OF DETERMINATION OF FII WITH SENSEX

MONTH
GROSS
PURCHASES GROSS SALES NET INVESTMENT
APRIL 0.071599272 0.259107325 0.005808
MAY 0.034097085 0.050539242 0.022029
JUNE 0.164540479 2.21877E-05 0.33177
JULY 0.084800519 0.002060859 0.124886
AUGUST 0.099793047 0.001114997 0.091028
SEPTEMBER 0.438025352 0.256222519 0.151926
OCTOBER 0.004575178 0.0969836 0.036083
NOVEMBER 0.00697321 0.059996895 0.003355
DECEMBER 0.444439801 0.474198576 0.21617
JANUARY 0.000484532 0.304162603 0.461349
FEBRUARY 4.75632E-05 0.028982681 0.022313
MARCH 0.17460218 0.06294736 0.230035

Similarly, in the case of FII and Sensex we have R2 = .46, indicating that
variation in FII explains about 46% of the variation in Sensex. 54% of the
variation in Sensex is unexplained by FII, explainable by other factors, omitted
variables, random variation, etc. We shouldn't put too much emphasis on R2,
t-stat are more important. However, R2, or some other measure of goodness
of fit is expected in reported empirical results.










56

TABLE1.7: T-statistics- FII and Nifty
MONTH Purchases Sales Net FII t(0.01) t(0.05)
April -1.339074452 -2.29467 -0.50896 2.567 1.74
May -0.907571397 -1.0121 0.560581 2.539 1.729
June 1.993833093 0.062084 2.997474 2.528 1.725
July 1.063712023 -0.03667 1.682898 2.528 1.725
August -1.38735818 -0.04467 -1.34851 2.528 1.725
September 3.642698972 2.440043 1.821109 2.528 1.725
October -0.460189184 -1.35354 0.506109 2.552 1.734
November 0.443023275 1.013144 -0.08732 2.552 1.734
December -4.363626504 -4.40261 -2.62379 2.518 1.721
January -0.083908304 -2.88498 3.515943 2.567 1.74
February 0.53094617 -0.23947 1.019787 2.552 1.734
March 2.069166259 -1.1822 2.471661 2.528 1.725

Comparing the t-stat to the critical value at the 1% level (one-tailed test) at
degree of Freedom, D.F. = N 2;
-the calculated t>t(0.05,0.01) for (n-2) d.f., variable is significant at 5% level.
-if t<t(0.05) the data are consistent with the hypothesis of an uncorrelated
We accept the Null Hypothesis since the maximum number of months show
that FII and Nifty are uncorrelated.












57

TABLE 1.8: T-statistics- FII and Sensex

MONTH Purchases Sales Net FII t(0.01) t(0.05)
April -1.145014609 -2.4383 -0.31514 2.567 1.74
May -0.818971306 -1.00566 0.654196 2.539 1.729
June 1.984671667 -0.02107 3.151163 2.528 1.725
July 1.361307913 0.20323 1.689426 2.528 1.725
August -1.488997461 -0.14941 -1.41523 2.528 1.725
September 3.948264684 2.624836 1.892839 2.528 1.725
October -0.287631201 -1.39039 0.820854 2.552 1.734
November 0.355526636 1.071855 -0.24615 2.552 1.734
December -4.098741766 -4.3519 -2.40656 2.518 1.721
January 0.09078017 -2.72599 3.815802 2.567 1.74
February 0.029260533 -0.73298 0.64093 2.552 1.734
March 2.056876281 -1.1591 2.444422 2.528 1.725

Comparing the t-stat to the critical value at the 1% level (one-tailed test) at
degree of Freedom, D.F. = N 2;
the calculated t>t(0.05,0.01) for (n-2) d.f., variable is significant at 5%
level.
if t<t(0.05) the data are consistent with the hypothesis of an
uncorrelated

We accept the Null Hypothesis since the maximum number of months show
that FII -Nifty and FII-Sensex are uncorrelated.








58



7
7
F
F
I
I
N
N
D
D
I
I
N
N
G
G
S
S
























59

It is an accepted fact now that FIIs have significant influence on the
movements of the stock market indexes in India. If one looks at the total
FII trade in equity in India and its relationship with the stock market major
indexes like Sensex and Nifty, it shows a steadily growing influence of FIIs
in the domestic stock market.
FIIs and the movements of Sensex are quite closely correlated in India
and FIIs wield significant influence on the movement of Sensex. NSE also
observes that in the Indian stock markets FIIs have a disproportionately
high level of influence on the market sentiments and price trends. This is
so because other market participants perceive the FIIs to be infallible in
their assessment of the market and tend to follow the decisions taken by
FIIs. This herd instinct displayed by other market participants amplifies
the importance of FIIs in the domestic stock market in India.
Results of this study show that not only the FIIs are the major players in
the domestic stock market in India, but their influence on the domestic
markets is also growing. Data on trading activity of FIIs and domestic stock
market turnover suggest that FIIs are becoming more important at the
margin as an increasingly higher share of stock market turnover is
accounted for by FII trading. Moreover, the findings of this study also
indicate that Foreign Institutional Investors have emerged as the most
dominant investor group in the domestic stock market in India. Particularly,
in the companies that constitute the Bombay Stock Market Sensitivity
Index (Sensex) and NSE Nifty, their level of control is very high. Dominant
position of FIIs in the Sensex companies, it is not surprising that FIIs are in
a position to influence the movement of Sensex and Nifty in a significant
way.
Since FIIs are dominating the Indian Market, individual investors are
forced to accept the dictates of major FIIs and hence join the group by
entering the Mutual Fund group. Many Mutual Funds floated specific funds
for the sectors favoured by the FIIs. An implication of MFs gaining
strength in the Indian stock market could be that unlike individual
investors, whose monies they manage, MFs can create market trends
whereas the small individual investors can only follow the trends. The
60

situation becomes quite difficult if the funds gain a vested interest in
certain sectors by floating sector specific funds. One can even venture to
say that the behaviour of MFs in India has turned the very logic that mutual
funds invest wisely on the basis of well-researched strategies and
individual investors do not have the time and resources to study and
monitor corporate performance, upside down. Thus, the entry of FIIs has
not resulted in greater depth in Indian stock market; instead it led to
focussing on only a few sectors. Ultimately to provide a level playing field,
even the domestic investors had to be offered lower rates of capital gains
tax.
While it can be expected that foreign affiliated mutual funds would follow
the investment pattern of FIIs, it is important to note that many domestic
ones also followed FIIs. The sectors favoured by FIIs account for a
substantial portion of the net assets under control of many Mutual Funds.
The Mutual funds are gaining prominence in the Indian Stock market and
that the share of foreign affiliated MFs is growing, a number of Indian
funds are following the investment strategies of the foreign ones.
On the other hand if FII investments constitute a large share of the equity
capital of a financial entity, an FII pullout, even if driven by development
outside the country can have significant implications for the financial health
of what is an important institution in the financial sector of this country.
Similarly, if any set of developments encourages an unusually high outflow
of FII capital from the market, it can impact adversely on the value of the
rupee and set of speculation in the currency that can in special
circumstances result in a currency crisis. There are now too many
instances of such effects worldwide for it be dismissed on the ground that
India's reserves are adequate to manage the situation.
FII investments, seem to have influenced the Indian stock market to a
considerable extent. FIIs are interested in the Indian stock market
increases its vulnerability to fluctuations. Analysis suggested a strong
influence of FII investment on the Sensex and Nifty index. This finding
61

takes quite further the general understanding that net FII investments
influences stock prices in India as it traces the relationship

The home bias portfolios of investors in industrial countries the tendency to
hold disproportionate amounts of stock from the home country suggests
substantial potential for further portfolio flows as global market integration
increases over time. It is important to note that global financial integration,
however, can have two distinct and in some ways conflicting effects on this
home bias. As more and more countries particularly the emerging markets
open up their markets for foreign investment, investors in developed
countries will have a greater opportunity to hold foreign assets. However,
these flows themselves, along with greater trade flows will tend to cause
different national markets to increasingly become parts of a more unified
global market, reducing their diversification benefits. Which of these two
effects will dominate is, of course, an empirical issue, but given the extent of
the home bias it is likely that for quite a few years to come, FII flows would
increase with global integration.
















62

8
8
C
C
O
O
N
N
C
C
L
L
U
U
S
S
I
I
O
O
N
N





























63

This paper provides a preliminary analysis of FII flows to India and their
influence on the prices of stocks in the Indian stock market. A more detailed
study using daily data of equity returns for a longer period or, better still,
disaggregated data showing the transactions of individual FIIs at the stock
level can help address questions regarding the extent of herding or return-
chasing behavior among FIIs which now account for a significant part of the
capital account balance in our balance of payments. The extent to which FII
participation in Indian markets has helped lower cost of capital to Indian
industries is also an important issue to investigate.

Broader and more long-term issues involving foreign portfolio investment in
India and their economy-wide implicationshave not been addressed in this
paper. Such issues would invariably require an estimation of the societal costs
of the volatility and uncertainty associated with FII flows. A detailed
understanding of the nature and determinants of FII flows to India would help
us address such questions in a more informed manner and allow us to better
evaluate the risks and benefits of foreign portfolio investment in India.
















64

9
9
R
R
E
E
C
C
O
O
M
M
M
M
E
E
N
N
D
D
A
A
T
T
I
I
O
O
N
N












65

Some of the steps that can be taken to help influence the choices made by
foreign institutional investors include:
The Government should cut its fiscal deficits, which would result in
strengthening the economy as a whole.
Creating infrastructure and other facilities to attract foreign investment. As
described earlier, an array of services can help promote foreign institutional
investment in India, ranging from basic services such as the provision of
electricity and clean water, to fair and effective dispute resolution systems.
The ability of governments to prevent or reduce financial crises also has a
great impact on the growth of capital flows. Steps to address these crises
include strengthening banking supervision, requiring more transparency in
international financial transactions and ensuring adequate supervision and
regulation of financial markets.
An attempt should be made to bring down the inflation level to attract more
foreign institutional investments into India.
The Banking system needs to be strengthened which could be achieved by
reducing the number of Non Performing Assets.
The FIIs investments, though shown an increasing trend over time, are still
far below the permissible limits. One such measure in this line could be the
newly announced INDONEXT, the platform for trading the small and mid-cap
companies, which might bring some focus on these companies and hopefully
add some liquidity and volume to their trading, which may attract some further
investments in them by FIIs.
The fact is that developing country like India has its own compulsions
arising out of the very state of their social, political and economic
development. To attract portfolio investments and retain their confidence, the
host countries have to follow stable macro-economic policies

66

Web site
http://www.investopedia.com/#axzz1mttHWzZ3
http://en.wikipedia.org/wiki/Real_estate
http://en.wikipedia.org/wiki/Commodity_market
http://business.mapsofindia.com/investment-industry/types-of-
http://en.wikipedia.org/wiki/International_marketing

References book
Market Research G.C. Berri,4
th
edition, TATA MC GRAW-hill Publishing
company limited, New Delhi.
Research Methodology Methods & Techniques, C.R Kothari, revised 2
nd

edition




















67

10. ANNEXURE
Table Showing Daily FII, Index for the time period 1/1//2011 to 31/12/2013
Date FII Date FII
01/01/2011 24.10 07/07/2012 297.1
02/01/2011 13.7 08/07/2012 174
03/01/2011 8.7 09/07/2012 190.2
04/01/2011 56.8 10/07/2012 187.4
07/01/2011 310.3 11/07/2012 142.1
08/01/2011 250.5 14/07/2012 -27.6
09/01/2011 165.9 15/07/2012 69.8
10/01/2011 -21.8 16/07/2012 90.7
11/01/2011 -0.4 17/07/2012 -50.8
14/01/2011 -34 18/07/2012 25.2
15/01/2011 48.9 21/07/2012 25.2
16/01/2011 -62.1 22/07/2012 33.8
17/01/2011 -47.8 23/07/2012 -1.1
18/01/2011 39.9 24/07/2012 45.7
21/01/2011 -40.1 25/07/2012 246
22/01/2011 -3.3 28/07/2012 64.2
23/01/2011 -38.9 29/07/2012 148.9
24/01/2011 -53.1 30/07/2012 33.6
25/01/2011 27.1 31/07/2012 -10.6
28/01/2011 -76 01/08/2012 234.9
29/01/2011 -107 04/08/2012 299.1
30/01/2011 -15.5 05/08/2012 84.7
31/01/2011 -22.6 06/08/2012 105.5
01/02/2011 -42.1 07/08/2012 -73.3
04/02/2011 -47.9 08/08/2012 0.8
05/02/2011 -11.1 11/08/2012 265.5
06/02/2011 -6.6 12/08/2012 159.6
07/02/2011 57.1 13/08/2012 193.1
08/02/2011 106.6 14/08/2012 113
11/02/2011 250.5 18/08/2012 102.1
12/02/2011 40.6 19/08/2012 120.5
13/02/2011 69.4 20/08/2012 155.7
14/02/2011 233 21/08/2012 186.4
15/02/2011 266.4 22/08/2012 -393.6
18/02/2011 162.7 25/08/2012 218.6
19/02/2011 142.9 26/08/2012 71.9
20/02/2011 39.2 27/08/2012 -3.9
21/02/2011 100 28/08/2012 88.1
22/02/2011 62.1 29/08/2012 162.2
25/02/2011 130 01/09/2012 170.9
26/02/2011 92.9 02/09/2012 296.8
27/02/2011 141.8 03/09/2012 311.6
28/02/2011 178.8 04/09/2012 66.3
01/03/2011 -2.9 05/09/2012 385.8
04/03/2011 96.1 08/09/2012 292.7
05/03/2011 -3.9 09/09/2012 263.1
06/03/2011 58.9 10/09/2012 395.3
68

07/03/2011 21.1 11/09/2012 132.3
08/03/2011 161.6 12/09/2012 -88.3
11/03/2011 87.6 15/09/2012 -76.1
12/03/2011 19.4 16/09/2012 77.8
13/03/2011 -36.1 17/09/2012 195.9
14/03/2011 -11.8 18/09/2012 298.6
15/03/2011 21.3 19/09/2012 231.3
18/03/2011 34.1 22/09/2012 111.6
19/03/2011 26.3 23/09/2012 157.3
20/03/2011 -19.4 24/09/2012 -108.5
21/03/2011 23.2 25/09/2012 402.4
22/03/2011 -48.2 26/09/2012 17.7
26/03/2011 5.9 29/09/2012 29.5
27/03/2011 -61.7 30/09/2012 287.3
28/03/2011 19.8 01/10/2012 256.1
01/04/2011 79.1 03/10/2012 122.1
02/04/2011 0.3 06/10/2012 582.3
03/04/2011 51.4 07/10/2012 356.1
04/04/2011 -9.8 08/10/2012 509
05/04/2011 61.9 09/10/2012 191.2
08/04/2011 12.6 10/10/2012 281.8
09/04/2011 20.3 13/10/2012 517.8
10/04/2011 -73.9 14/10/2012 440.6
11/04/2011 11.6 15/10/2012 521.2
12/04/2011 44.9 16/10/2012 304.4
15/04/2011 24.2 17/10/2012 417.7
16/04/2011 -81.3 20/10/2012 535.8
17/04/2011 -57.6 21/10/2012 318.9
18/04/2011 48 22/10/2012 286
19/04/2011 19.3 23/10/2012 203.1
22/04/2011 -69.7 24/10/2012 -87.5
23/04/2011 -1.6 25/10/2012 0
24/04/2011 -6.5 27/10/2012 122.1
25/04/2011 -18.5 28/10/2012 112
26/04/2011 46.1 29/10/2012 246
29/04/2011 -5.3 30/10/2012 223.5
30/04/2011 -83.8 31/10/2012 337.3
02/05/2011 -34.2 03/11/2012 321.4
03/05/2011 42.3 04/11/2012 508.5
06/05/2011 11.4 05/11/2012 598
07/05/2011 0.6 06/11/2012 265.2
08/05/2011 57.5 07/11/2012 134.2
09/05/2011 40.9 10/11/2012 64.9
10/05/2011 34.6 11/11/2012 232.9
13/05/2011 -3.6 12/11/2012 146
14/05/2011 29.1 13/11/2012 56.6
15/05/2011 21.5 14/11/2012 368.5
16/05/2011 32.4 15/11/2012 0
17/05/2011 13.9 17/11/2012 12.4
20/05/2011 -35.7 18/11/2012 -20.4
21/05/2011 -5.1 19/11/2012 -12.4
22/05/2011 -19.5 20/11/2012 -87
69

23/05/2011 18.6 21/11/2012 138
24/05/2011 -46.8 24/11/2012 2
27/05/2011 47.6 25/11/2012 -24.6
28/05/2011 -2 27/11/2012 158.9
29/05/2011 -103.2 28/11/2012 437.4
30/05/2011 -129.9 01/12/2012 216.1
31/05/2011 -26.4 02/12/2012 563.4
03/06/2011 -150.1 03/12/2012 286.1
04/06/2011 -83.6 04/12/2012 286.1
05/06/2011 -19.9 05/12/2012 303.1
06/06/2011 127.8 08/12/2012 221.5
07/06/2011 99.6 09/12/2012 -46.6
10/06/2011 -7.8 10/12/2012 348.7
11/06/2011 -251.6 11/12/2012 612.4
12/06/2011 116.9 12/12/2012 273.7
13/06/2011 67.3 15/12/2012 149
14/06/2011 -29.2 16/12/2012 182.5
17/06/2011 -114.9 17/12/2012 452.3
18/06/2011 -62.5 18/12/2012 -56.1
19/06/2011 -94.2 19/12/2012 293.7
20/06/2011 -66.1 22/12/2012 617.5
21/06/2011 -10.7 23/12/2012 284.1
24/06/2011 -24.2 24/12/2012 307.5
25/06/2011 -24.7 26/12/2012 223.4
26/06/2011 40.2 29/12/2012 63.4
27/06/2011 56.8 30/12/2012 267.5
28/06/2011 49.8 31/12/2012 443.2
01/07/2011 59 01/01/2013 305.1
02/07/2011 51.6 02/01/2013 91.2
03/07/2011 16.9 05/01/2013 500.7
04/07/2011 35.4 06/01/2013 216.7
05/07/2011 50.9 07/01/2013 163.5
08/07/2011 29.1 08/01/2013 86.4
09/07/2011 42.3 09/01/2013 155.5
10/07/2011 -42.4 12/01/2013 449.2
11/07/2011 -0.1 13/01/2013 173.2
12/07/2011 -46.7 14/01/2013 -40.4
15/07/2011 13.5 15/01/2013 20.9
16/07/2011 22.8 16/01/2013 -57.5
17/07/2011 -39.2 19/01/2013 -86.9
18/07/2011 -7.8 20/01/2013 27.5
19/07/2011 4.9 21/01/2013 344
22/07/2011 49.2 22/01/2013 134.7
23/07/2011 -70.2 23/01/2013 48
24/07/2011 229.5 27/01/2013 61.5
25/07/2011 -128.9 28/01/2013 354.9
26/07/2011 -38 29/01/2013 259.3
29/07/2011 16.6 30/01/2013 -29.8
30/07/2011 84.7 03/02/2013 -436
31/07/2011 15.4 04/02/2013 325.7
01/08/2011 -3.6 05/02/2013 143.1
02/08/2011 33.8 06/02/2013 232
70

05/08/2011 -2.1 09/02/2013 225.5
06/08/2011 -26.2 10/02/2013 250.8
07/08/2011 -15.2 11/02/2013 578.4
08/08/2011 -21.4 12/02/2013 -39
09/08/2011 -16.1 13/02/2013 135.7
12/08/2011 -81.3 16/02/2013 65.7
13/08/2011 46.9 17/02/2013 65.7
14/08/2011 45.4 18/02/2013 367.7
16/08/2011 -11.9 19/02/2013 377
19/08/2011 16.1 20/02/2013 258.9
20/08/2011 64.5 23/02/2013 358.5
21/08/2011 113.7 24/02/2013 -168.1
22/08/2011 -15.2 25/02/2013 -270.2
23/08/2011 8.8 26/02/2013 53
26/08/2011 18.7 27/02/2013 -112.6
27/08/2011 -44.3 01/03/2013 326
28/08/2011 16.1 03/03/2013 333.4
29/08/2011 49.5 04/03/2013 295.8
30/08/2011 28.1 05/03/2013 256.7
02/09/2011 13.3 08/03/2013 -16.9
03/09/2011 -53.8 09/03/2013 356.7
04/09/2011 -359.2 10/03/2013 45.4
05/09/2011 -57.7 11/03/2013 61.4
06/09/2011 -1.3 12/03/2013 201.9
09/09/2011 4.9 15/03/2013 207
11/09/2011 -33 16/03/2013 123.9
12/09/2011 35.2 17/03/2013 59
13/09/2011 -18.4 18/03/2013 297.9
16/09/2011 -39.9 19/03/2013 77.9
17/09/2011 13.9 22/03/2013 158
18/09/2011 29.1 23/03/2013 180.4
19/09/2011 -47.3 24/03/2013 527.1
20/09/2011 -81.3 25/03/2013 64.3
23/09/2011 -98.1 26/03/2013 170.7
24/09/2011 -17.6 29/03/2013 1239.2
25/09/2011 -37.9 30/03/2013 271
26/09/2011 2.4 31/03/2013 367.6
27/09/2011 1267.1 01/04/2013 3490.4
30/09/2011 -51.7 02/04/2013 755.4
01/10/2011 -87.1 05/04/2013 318.7
03/10/2011 43 06/04/2013 417.4
04/10/2011 -162.5 07/04/2013 131.2
07/10/2011 -224.7 08/04/2013 168.3
08/10/2011 -97.1 12/04/2013 0
09/10/2011 -67.7 13/04/2013 3.5
10/10/2011 -60.2 15/04/2013 381
11/10/2011 30.1 16/04/2013 -185.9
14/10/2011 79.6 17/04/2013 0
16/10/2011 11.6 19/04/2013 62.6
17/10/2011 -70.1 20/04/2013 693.2
18/10/2011 35 21/04/2013 11.6
21/10/2011 91.2 22/04/2013 89.5
71

22/10/2011 -44.4 23/04/2013 955.2
23/10/2011 -8.6 27/04/2013 381.1
24/10/2011 -72.2 28/04/2013 7.2
25/10/2011 -67.2 29/04/2013 50.9
28/10/2011 -73.3 30/04/2013 -332.3
29/10/2011 -86.7 03/05/2013 25.2
30/10/2011 11.2 04/05/2013 66.5
31/10/2011 43.7 05/05/2013 -95.5
01/11/2011 89.5 06/05/2013 -38.1
04/11/2011 -78.1 07/05/2013 -14.9
05/11/2011 33.4 10/05/2013 -168.1
07/11/2011 30.2 11/05/2013 -595.2
08/11/2011 -38.3 12/05/2013 -403.4
11/11/2011 -21 13/05/2013 -295.1
12/11/2011 24.9 14/05/2013 -604.4
13/11/2011 -11.5 17/05/2013 -504.4
14/11/2011 26.7 18/05/2013 -63.6
15/11/2011 67.3 19/05/2013 -227.5
18/11/2011 183.9 20/05/2013 -49.9
20/11/2011 -39.3 21/05/2013 -116
21/11/2011 70.4 24/05/2013 -192.5
22/11/2011 41.1 25/05/2013 28.4
25/11/2011 68.9 26/05/2013 -129.8
26/11/2011 77.4 27/05/2013 13.1
27/11/2011 -35.9 28/05/2013 -70.8
28/11/2011 -94.7 31/05/2013 189.1
29/11/2011 92.6 01/06/2013 21.3
02/12/2011 -42.8 02/06/2013 264.9
03/12/2011 1.9 03/06/2013 52.8
04/12/2011 10.5 04/06/2013 51.7
05/12/2011 -218.1 07/06/2013 -41.4
06/12/2011 22.9 08/06/2013 222.3
09/12/2011 62.5 09/06/2013 42.7
10/12/2011 27.3 10/06/2013 2.5
11/12/2011 -55 11/06/2013 -61.1
12/12/2011 66.8 14/06/2013 -126
13/12/2011 173.4 15/06/2013 127.3
16/12/2011 -22.7 16/06/2013 109.2
17/12/2011 76.6 17/06/2013 6.4
18/12/2011 24.8 18/06/2013 -11.3
19/12/2011 48.2 21/06/2013 -15.8
20/12/2011 40.6 22/06/2013 20.8
23/12/2011 17.3 23/06/2013 -134
24/12/2011 140 24/06/2013 -108.1
26/12/2011 12.8 25/06/2013 26.8
27/12/2011 19.1 28/06/2013 44.9
30/12/2011 32.5 29/06/2013 9.7
31/12/2011 -11.4 30/06/2013 10.8
01/01/2012 -29.2 01/07/2013 -184.8
02/01/2012 28.2 02/07/2013 145
03/01/2012 -56.7 05/07/2013 61.1
06/01/2012 -22.1 06/07/2013 47.8
72

07/01/2012 1.4 07/07/2013 35.2
08/01/2012 -32 08/07/2013 -11.7
09/01/2012 84.2 09/07/2013 147.6
10/01/2012 39.8 12/07/2013 -73.7
13/01/2012 54.2 13/07/2013 111.8
14/01/2012 6.5 14/07/2013 -13.1
15/01/2012 142.6 15/07/2013 -48.9
16/01/2012 257.3 16/07/2013 -127.9
17/01/2012 76.1 19/07/2013 132.5
20/01/2012 73.4 20/07/2013 99.6
21/01/2012 7.9 21/07/2013 61.1
22/01/2012 51.7 22/07/2013 18.6
23/01/2012 16.7 23/07/2013 64.7
24/01/2012 16.3 26/07/2013 69
27/01/2012 68.1 27/07/2013 127.3
28/01/2012 -1.1 28/07/2013 60.9
29/01/2012 -43.7 29/07/2013 29.1
30/01/2012 58.6 30/07/2013 162.2
31/01/2012 89.8 02/08/2013 98.4
03/02/2012 148.4 03/08/2013 58.6
04/02/2012 37.9 04/08/2013 30.6
05/02/2012 133.3 05/08/2013 5.5
06/02/2012 50.4 06/08/2013 171.9
07/02/2012 69.2 09/08/2013 -27.7
10/02/2012 -8.3 10/08/2013 32.3
11/02/2012 -16.9 11/08/2013 58.3
12/02/2012 -28.8 12/08/2013 -74.4
14/02/2012 -44.9 13/08/2013 -148.3
17/02/2012 20.5 16/08/2013 805.3
18/02/2012 -36.6 17/08/2013 -95.5
19/02/2012 31.5 18/08/2013 -50.4
20/02/2012 34 19/08/2013 -72.6
21/02/2012 19.5 20/08/2013 1824.9
24/02/2012 55.9 23/08/2013 377.1
25/02/2012 -36.6 24/08/2013 -23.5
26/02/2012 -64.4 25/08/2013 -54.3
27/02/2012 -7 26/08/2013 -105.1
28/02/2012 21.6 27/08/2013 126
03/03/2012 174.8 30/08/2013 -75.9
04/03/2012 24.5 31/08/2013 31.1
05/03/2012 -30.3 01/09/2013 16.9
06/03/2012 -18.9 02/09/2013 20.2
07/03/2012 -1.7 03/09/2013 155.6
10/03/2012 -24.1 06/09/2013 69.3
11/03/2012 35.6 07/09/2013 -39.7
12/03/2012 7.9 08/09/2013 38.4
13/03/2012 -14.1 09/09/2013 45.5
17/03/2012 -67.3 10/09/2013 155.8
19/03/2012 -84.1 13/09/2013 140.1
20/03/2012 83.9 14/09/2013 110.5
21/03/2012 156.8 15/09/2013 183.6
22/03/2012 0 16/09/2013 104.5
73

24/03/2012 44 17/09/2013 148.5
25/03/2012 40 20/09/2013 481.1
26/03/2012 -14.6 21/09/2013 220.1
27/03/2012 -24.8 22/09/2013 204.5
28/03/2012 43.6 23/09/2013 117.6
31/03/2012 80.5 24/09/2013 -146.5
01/04/2012 16 27/09/2013 83.6
02/04/2012 57.5 28/09/2013 38.9
03/04/2012 -6.1 29/09/2013 130.1
04/04/2012 112.3 30/09/2013 107
07/04/2012 36 01/10/2013 416
08/04/2012 95.3 04/10/2013 242.8
09/04/2012 64.1 05/10/2013 413.2
10/04/2012 -11.2 06/10/2013 176.6
11/04/2012 -278.9 07/10/2013 21.8
15/04/2012 -287.6 08/10/2013 259.6
16/04/2012 94.7 09/10/2013 117.2
17/04/2012 227.9 11/10/2013 3.7
21/04/2012 82.5 12/10/2013 166
22/04/2012 63.4 14/10/2013 66.4
23/04/2012 28.8 15/10/2013 174.5
24/04/2012 -15.1 18/10/2013 39.5
25/04/2012 74.3 19/10/2013 111.2
28/04/2012 25 20/10/2013 83.1
29/04/2012 -65.4 21/10/2013 -13.1
30/04/2012 116.8 25/10/2013 -171
02/05/2012 135.5 26/10/2013 77.9
05/05/2012 64.6 27/10/2013 90.1
06/05/2012 -10.8 28/10/2013 71.6
07/05/2012 137.1 29/10/2013 916.2
08/05/2012 48.4 01/11/2013 1195.1
09/05/2012 0 02/11/2013 131.9
12/05/2012 28.1 03/11/2013 21.3
13/05/2012 24.2 04/11/2013 70.9
14/05/2012 -25.1 05/11/2013 330.7
15/05/2012 20.8 08/11/2013 585.1
16/05/2012 21.5 09/11/2013 295
19/05/2012 50.7 10/11/2013 272
20/05/2012 51.2 11/11/2013 167.4
21/05/2012 88.6 12/11/2013 217
22/05/2012 78.5 16/11/2013 -112.6
23/05/2012 -43.5 17/11/2013 357.5
26/05/2012 45.8 18/11/2013 270
27/05/2012 50.3 19/11/2013 216
28/05/2012 66 22/11/2013 517.3
29/05/2012 184 23/11/2013 336.4
30/05/2012 204.9 24/11/2013 562.9
02/06/2012 123.6 25/11/2013 279.1
03/06/2012 127.3 29/11/2013 529.6
04/06/2012 80.6 30/11/2013 498.2
05/06/2012 56 01/12/2013 876.9
06/06/2012 213 02/12/2013 332.1
74

09/06/2012 167.6 03/12/2013 9994.2
10/06/2012 42.3 06/12/2013 473.4
11/06/2012 -42.8 07/12/2013 299.7
12/06/2012 130.7 08/12/2013 305.2
13/06/2012 82.6 09/12/2013 147.4
16/06/2012 158.4 10/12/2013 151.9
17/06/2012 28 13/12/2013 328.9
18/06/2012 377.3 14/12/2013 199.7
19/06/2012 173.5 15/12/2013 182.4
20/06/2012 130.6 16/12/2013 406.6
23/06/2012 96.6 17/12/2013 346.3