Impact of Foreign Institutional Investors on Indian Stock Market During Covid Induced Lockdown Period

Abstract

Covid-19 outbreak has traumatized people across the world. The contagious pandemic created a dicey situation and had a deep impact on various sectors globally. The overall economic picture turned topsy-turvy. This study focuses on how Covid-19 affected the instability of capital market and the ramifications of FII on the same during lockdown period. The global spread of the pandemic casted a shadow upon the Institutional investors which they find difficult to escape. The sudden withdrawal of capital by the investors melted the global markets. However, Indian market managed to tackle this economic recession when foreign institutional investors came up pouring money. Reports suggest that the country witnessed a rise of 15% yearlong to Rs.29,400 Crore. The study also infers the role played by FIIs in molding back the market, which has undergone a drastic crash down during lockdown and the extent to which FII has aided for the same