Impact of FII on Indian Economy/Stock Market?

The prosperity and success of a country are represented by the measures of its continuous growth of the economy, which is fueled by investment. Foreign reserves, government revenue, exports as well as the quantity and nature of foreign investment are all very crucial for a nation's well-being. The FIIs have recently risen as significant stakeholders in the capital market of India. They are increasingly becoming one of the primary elements contributing to the expansion of financial markets, particularly in developing nations like India. Through this paper, our foremost goal was to analyze the affect of Foreing institutional investors on the equity market from the period 2011 to 2021. We have used various tests to study the effect. The study's findings suggested that FII investment and Nifty50 were highly influenced by the COVID-19 pandemic, which occurred during the period under stud