IMPACT OF FOREIGN INSTITUTIONAL INVESTMENT’S ON SENSEX MOVEMENTS

The Economic Development of any country depends upon the existence of wellorganized financial markets. It is the financial system, which supplies the necessary financial inputs for the production of goods and services, which in turn promote the well being and standard of living of the people of a country. Capital Market are of crucial significance to capital formation as the main function of these markets is the mobilization of savings and their distribution for the industrial investment, thereby stimulating the capital formation and to that extent, accelerating the process of economic growth. There are two broad segments of the financial market viz. the money market and the capital market. The money market deals with short-term debt, whereas the capital market deals with long-term debt and stock (Equity and Preference). Each of these markets has a primary segment and a secondary segment. New financial assets are issued in the primary market; whereas outstanding financial assets are traded in the secondary segment. the components of the Indian Corporate Security Market. When a company wishes to raise capital by issuing securities or other entity intends to raise funds through units, debt instruments or bonds etc. it goes to the primary market, which is the segment of the capital market where issuers exchange securities for long run funds. The government has accorded powers to the SEBI, as an autonomous body, to oversee the functioning of the security market and the operations of the intermediaries mutual funds, merchant bankers, underwriters, portfolio managers, debentures trustees, bankers to an issue, registrars to an issue, share transfer agents, stock brokers and sub-brokers, Foreign Institutional Investors (FIIs), and rating agencies.