Foreign investors and global integration of Indian equity market

S Poshakwale, Chandra Thapa

Research output: Contribution to journalArticle

9 Citations (Scopus)

Abstract

This article examines the influence of foreign investors in explaining short-run dynamics and long-run relationship of the emerging Indian equity market with global equity markets. Using daily return series and equity portfolio investments made by foreign institutional investors, we conclude that the rapid growth in the flow of foreign equity portfolio investments is leading to greater integration of the Indian equity market with global markets. With the increased global integration, the Indian market will become more susceptible to global shocks as has been witnessed by significant losses suffered by investors in the Indian market following the sub-prime crisis.
Original languageEnglish
Pages (from-to)1-24
Number of pages24
JournalJournal of Emerging Markets finance
Volume9
Issue number1
DOIs
Publication statusPublished - Apr 2010

Keywords

  • emerging Indian stock market
  • foreign portfolio investments
  • sub-prime crisis
  • global markets

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