The relationship of domestic institutional investors and India stock market returns: An ARDL bound testing approach. Issue 2 (3rd April 2022)

• Record Type: Journal Article
• Authors: Srivastava, Purwa; Varshney, Sakshi
• Is Part Of: Journal of transnational management. Volume 27:Issue 2(2022)
• Page Start: 97
• Page End: 116
• Publication Date: 2022-04-03
• Subjects: ARDL bound test -- bound testing -- domestic institutional investors -- financial institution -- India -- insurance companies -- mutual funds -- national stock exchange -- stock markets -- venture capital funds; International business enterprises -- Management -- Periodicals; 658.049
• DOI: 10.1080/15475778.2020.1789412
• Languages: English
• ISSNs: 1547-5778

Abstract

Abstract: Purpose: This study explores the relationship of investment done by domestic institutional investors (DII) and stock market returns. The paper covers a bigger definition of DII's, bifurcating them into four categories, (a) mutual fund, (b) venture capital fund, (c) financial institutions and (d) insurance companies who have invested in national stock exchange of India. Design/Methodology: The study uses CNX Nifty 50 to represent the stock market of India. ARDL bound testing cointegration model is applied to find the relationship between the Dependent variable (nifty 50) and Independent variables (mutual fund, venture capital fund, Indian financial institution and insurance companies) Practical implication: This analysis will help regulatory authorities to improvise on policy making on investment in stock market for insurance companies, financial institution, venture capital fund and mutual fund. The surge in domestic institutional equity inflows, will help to insulate the Indian equity market from the high velocity traders of overseas. Originality/value: This is the first study to undertake domestic institutional investors at a disintegrated level.