Fii Trading And Its Relationship With Volatility Of National Index

Since the Globalization of Indian Economic Market in 1991 considerable amount of foreign inflows have been seen in the form of FII- Foreign Institutional Investment. This paper focuses on FII investment (Purchase & sale) and it’s impact on Indian Stock Indices i.e. Sensex and Nifty. As Volatility is the level of fluctuation in the stock indices as the result of various internal as well as external factors, it would be ideal to have a correlation of Volatility of Indian stock market which is represented by INDIA VIX with the FII trading pattern to improve our understanding of the stock market. This research paper will explore the trading pattern that has been done during the financial year 2016-17.