24 4.4 S&P CNX Nifty & FII.

Here in this study I have assumed that the FII is Independent variable and S&P C NX Nifty isIndependent variable.Year S & P CNX Nifty FII1993 1042.59 51261994 11 82.28 47961995 908.53 27521996 899.1 84841997 1079.4 48761998 884.25287711999 14 80.456697.32000 1263.556510.92001 1059.0513299.52002 1093.53677.92003 1879.75351 53.32004 2080.542048.52005 2836.5541663.62006 2080.540588.92007 6138.680914.6200 8 2959.15-41215.52009 5201.0587987.22010 6134.5179674.12011 500118170.70Figure-1 3Correlation Coefficient 0.72Correlation Determination 0.52Probability Error 0.0 7Figure-14Interpretation-Foreign Institutional Investment & CNX Nifty is having partial Positive relation. As per thestatistical data the Correlation Coefficien t is 0.72, we can say that the there is 72% market isdependent on FII flow in th e capital market, the Probability Error indicates there may be 0.07change in the relation between them. It can volatile between 0.07.Foreign Institutional Invest ment in Indian Capital market makes much impact, because theflow of money comes into the capital market directly. The basic economics law says aboutthe demand a nd supply and also about the price and demand of particular product. If there is more liquid money is available to investor and they invest in the capital market then it makesthe significant effect on the whole market.The performance of the nifty is on a certain stable level. It was not so much volatile. up tothe year 2 005 Nifty was having stable value but in the year 2008 because of certain factor sand the global crises the values collapse and the direct effect we found on FII earning. And 25the performance of the FII is having very low investment flow in the starting phase and thenafter the flow of investment was having good sound. It got increas ed in a very short periodFigure-15As the above graph indicates the flow of CNX N ifty and the FII in India. We found that thenifty and FII is up to some parallel level but in the year 2002. FII flow was increased and thestock market also get s stable. The major collapse in the year 2008. Market was bearish andFII earning was in negative but within a short period of two years and it gets stable. Thei mpact of FII on Indian stock market makes direct effect.