Correlation studies of Foreign Institutional Investor and Nifty of the past decade

Foreign Institutional Investors were, are and will be the strong players in the stock markets. The inflow of investments from the overseas investors has shown the real dynamism of stock markets and also led to the highest peaks and sudden falls in the benchmark index CNX NIFTY. In this paper, we tried to explain the reasons why India is still attracting the foreign institutional investors. In addition to the above, this project also provides a clear view about the trading in S&P CNX Nifty. The data for the study uses the information obtained from the secondary resources like website of S&P CNX Nifty. This project also attempts to explain about the correlation between FII and S&P CNX Nifty, using Karl Pearson’s Product-Moment coefficient of correlation (r