A STUDY OF IMPACT OF FOREIGN INSTITUTIONAL INVESTORS ON MIDCAP & SMALLCAP MARKET

A DISSERTION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: MRS. PRERNA SHRIVASTAVA (Lecturer)

SUBMITTED BY: GOPAL AGARWAL Enrollment No.: DX/07/16920

MEDICAPS INSTITUTE OF TECHNOLOGY & MANAGEMENT INDORE

CERTIFICATE

This is to certify that Mr. Gopal Agarwal a student of Master of Business Administration, Medicaps Institute of Technology & Management, Indore, has successfully completed his project under my supervision. During this period he worked on the project titled “A STUDY OF IMPACT OF FOREIGN INSTITUTIONAL INVESTORS ON MIDCAP & SMALLCAP MARKET” in fulfillment for the award of degree of Master of Business Administration of Devi Ahilya Vishwavidhyalaya, Indore.His performance and conduct has been good.

HEAD OF DEPARTMENT

PROJECT GUIDE

(Dr. Hemant Indurkar) Director

(Mrs. Prerna Shrivastava) Lecturer

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ACKNOWLEDGEMENT

I want to express my sincere gratitude to all those who made this study possible. First of all I am thankful to the helpful staff and the faculty of Medicaps Institute of Technology & Management. One of the most important tasks in every good study is its critical evaluation and feedback which was provided to me by my guide Mrs. Prerna Shrivastava.I am also thankful to Mr. Vardhan Choubey for investing his precious time to discuss and criticize this study in depth and explained the meaning of different concepts and how to think when it comes to problem discussions and theoretical discussions. I am also thankful to Mr. Akhilesh Rathi owner of “SNR Securities & Finance A Franchisee of Angel Broking Ltd.” for his support and guidance for the project.

(Gopal Agarwal)

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CONTENT

Abstract I II III IV V Introduction........................................................................................................... 6 Rationale of Study………………………………………………………………. 7 Objective............................................................................................................... 8 Research Methodology ........................................................................................ 9 Foreign Institutional Investors………………………………………………….. 10 V.i FII registered in India V.ii Why FII Invest in India VI BSE Mid-Cap and BSE Small-Cap Index………………………………………. 12 VII Foreign Institutional Investment: A Cost - Benefit Analysis……………………. 13 VIII Analysis…………………………………………………………………………. 14 IX Results…………………………………………………………………………... 17 X Conclusion………………………………………………………………………. 18 Appendix Historical Datasheet Midcap & Smallcap Indices Vs Sensex FII Investment Vs Midcap & Smallcap Indices Volatility Analysis Scripwise Impact of FII Shareholding on Price Movement of Midcap Companies Scripwise Impact of FII Shareholding on Price Movement of Smallcap Companies References

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5 . This project analyses the impact of foreign institutional investment particularly among Midcap & Smallcap market of Bombay Stock Exchange. It is observed that there is a high degree of correlation between Midcap & Smallcap Indices and Sensex and also FII gross purchases show high degree of correlation with Midcap and Smallcap Indices. Analyzing the relationship between foreign institutional investment and movement of indices and movement of prices of ten scrip each of Midcap and Smallcap Indices.FIIs are also responsible for volatility in the stock market.ABSTRACT Foreign Institutional Investors have gained a significant role in Indian capital market.

Along with this surge in FII inflows there has also been a boom in the Indian capital market as indicated by the stock market indices and market capitalisation. of which stagnant returns from the previous investment destinations and the present rate of growth of Indian economy seems to play an important role. 32000 crore in 2009. This shallowness also means that the FIIs can also affect the behavior of other retail investors.. 6 . Indian stock markets are known to be known narrow and shallow in the sense that there are few companies whose shares are actively traded. FII investments bring in global liquidity into the equity markets and raise the price-earning ratio and thereby reduce the cost of capital domestically. who tend to follow the FIIs when making their investment decision. and above all their dominant investment philosophy of emphasizing the fundamentals have rendered efficient pricing of the stocks. investors are directly affected by this increase in FII flows as it enhances or diminishes the security prices and returns in Indian capital market. Although there are more than 8000 companies listed with stock exchange. the BSE Midcap & Smallcap Index incorporates only 685 companies. their role in determining the share price movements must be considerable. Lower cost of funds on account of low interest rates will aid the economic recovery and support valuations. Net FII inflows into India increased steadily since the mid 1990s and reached Rs. The presence of Foreign Institutional Investors in the BSE Midcap & Smallcap companies and their active trading behaviours. increased depth and breadth of the market. Apart from other macro economic consequences. Theoretically. expansion of securities business. The surge in capital inflows could be viewed as an outcome of a combination of ‘push’ and ‘pull’ factors. Movement in the sensex has clearly been driven by the behavior of Foreign Institutional Investors. The FIIs are major institutional investors in Indian capital market.INTRODUCTION The increasing role of institutional investors has brought both quantitative and qualitative developments in the stock market viz.

The companies in which they invest are getting overvalued. FII investment trends tell us about many effects that the Indian market is experiencing. Whenever FII find any trouble they withdraw their investments.RATIONALE OF STUDY Foreign Institutional Investors are said to be the drivers of the market. They are the cause behind the rise and fall of Sensex.The return provided by them is high as compared to Sensex scrips. So inorder to find the impact of FII on these market I had taken this study. 7 . There is a lot of discussion in the market about Sensex of BSE but many of us do not talk about other Indices like BSE Midcap and Smallcap which are high growth oriented and risky investment avenues. FIIs are also interested in investment in these scrips and impact these indices.

OBJECTIVE The objective of this study is to:  Find the relation of Midcap & Smallcap Indices with the Sensex.  Find the relationship between the Midcap & Smallcap Indices variations with the variation of investments made by the Foreign Institutional Investors.  To analyze the impact of FII shareholding on Price movement of Midcap & Smallcap companies. 8 .  Find the impact of activities of Foreign Institutional Investors on the volatility of Midcap & Smallcap market.

Sample Size: Four year data was collected as:  Monthly data from BSE of Midcap & Smallcap Indices (2005-2009)  Monthly data of FII flow in equity (2005-2009)  Quarterly FIIs shareholding data of ten companies each of Midcap & Smallcap Indices (2005-2009)  Quarterly closing price data of ten companies each of Midcap & Smallcap Indices (2005-2009) Tools for Analysis:  Various Graphs/Charts etc.In this research I have used FIIs gross purchases data to find the relation with Midcap & Smallcap Indices. I have used both FIIs gross purchases & sales data to analyse the volatility. Research is an original contribution to existing stock of knowledge making for its advancement. Collecting data from Magazines. Type of Research: The Research which will be carried out by me is descriptive & analytical Research.I am focusing my research on Midcap & Smallcap market of Bombay Stock Exchange.  Correlation Analysis 9 . Collecting Information from books. Collecting data from BSE. The Research is on” A Study of Impact of Foreign Institutional Investors on Midcap & Smallcap Markets “.     Collecting data from Internet. It is the pursuit of truth with the help of observations. Data Collection: Secondary sources have been used for the collection of the data used in the research. One can define research as a scientific & systematic search for pertinent information on a specific topic. SEBI websites etc.RESEARCH METHODOLOGY Research refers to search for knowledge. I have taken closing prices of Midcap & Smallcap companies & closing value of both Indices.

FOREIGN INSTITUTIONAL INVESTOR Foreign Institutional Investor (FII) is used to denote an investor . the SEBI takes into account the track record of the FII. investment trusts. 1995 in November 1995. different types of FIIs have been allowed to operate in Indian stock markets. sales and net investment “Table-4” figure on monthly basis gives a fair idea about the consistency of their investments in our country. Subsequently. The gross purchase. and they have to obtain initial registration with SEBI. Not only has been the number increasing on a consistent basis. but the amount of inflow into Indian market has also seen a manifold increase. FII investment is frequently referred to as hot money for the reason that it can leave the country at the same speed at which it comes in. incomes received by way of interest and any compensation received towards sale/renouncement of rights offering of shares subject to payment of withholding tax at source.mostly of the form of an institution or entity. foundations and charitable trusts/societies with a track record. The net proceeds can be remitted at market rates of exchange. derivatives traded on a recognized stock exchange and schemes floated by domestic mutual funds. the Securities and Exchange Board of India (SEBI) notified the SEBI (Foreign Institutional Investors) Regulations. nominee companies. including equity shares and other securities listed or to be listed on the stock exchanges. which invests money in the financial markets of a country different from the one where in the institution or entity was originally incorporated. financial soundness. FIIs can invest in all securities traded on the primary and secondary markets.minimum or maximum . mutual funds. They now include institutions such as pension funds. its professional competence. The trend in the number of registered FIIs“Table-3” has been consistently on the rise showing the significant amount of confidence that Indian Capital market has developed in the last few years. The Union Government allowed the entry of FIIs in order to encourage the capital market and attract foreign funds to India. experience and such other criteria as may be considered relevant by SEBI.for the purpose of entry of FIIs. dividends. Further. Today. endowments.India had 528 FIIs registered with SEBI by end of 2001 and by end of Mar-2009 the number increased to1581. incorporated/institutional portfolio managers. university funds. Proprietary funds have also been permitted to make investments through the FII route subject to certain conditions. A major feature of the guidelines is that there are no restrictions on the volume of investment . Besides. FIIs can repatriate capital gains. There is also no lock-in period prescribed for the purpose of such investments. Such investments include equity/debentures/warrants/other securities/instruments of companies unlisted. Over the years. 10 . asset management companies. For granting registration to an FII. The original guidelines were issued in September 1992. listed or to be listed on a stock exchange in India including the Over-the-Counter Exchange of India. FII REGISTERED IN INDIA: The SEBI is the nodal agency for dealing with FIIs. FIIs seeking initial registration with SEBI will be required to hold a registration from an appropriate foreign regulatory authority in the country of domicile/incorporation of the FII. FIIs are permitted to invest in all securities traded on the primary and secondary markets.

................. both being percentages and less than 1............... Now...... Essentially this is a two-step decision...... risk for a foreign investor would be determined among other things by correlation between domestic returns in the host country and returns on its currency... since correlations between stock returns in different countries are lower than correlations among stock returns in the same country.. the return would be RF derived as follows: RF = (X1P1....Dev... reduce the diversifiable risk and earn higher returns.... X1 denote the Rupee-Dollar exchange rate at the beginning and end of the investing period. ........ Let P0 and P1 be the stock prices at the beginning and end of the investing period respectively.........WHY FII INVEST IN INDIA: As per the theory of international portfolio investment the basic motivation for any investor including the FIIs for investing in foreign equity is to diversify their portfolio............ Var stands for variance of expected returns....... the FII has to decide about the portfolio composition or portfolio choice within the country concerned....Deviation of Rd) (Std.. X0... Consider an American investor buying stock of an Indian company...(1) For the foreign investor.... In taking the first step. More importantly.. (3) BSE MIDCAP AND BSE SMALLCAP INDEX 11 ... since international investments involve returns in foreign currency. as measure of risk..... which would be as follows: Rd = (P1-P0) /P0 ....... Any foreign equity investor simultaneously invests in the currency of the country whose stock is purchased and returns on currency Rc would be as follows: Rc = (X1-X0)/X0 From equations (1)........... which can be very low or even negative.0.. The first step is the choice of the country. Having decided on the host country......of Rc) where.. (2) where... the same have to be factored in the analysis..... investment in foreign assets can reduce the overall risk for an investor holding an internationally diversified portfolio. (2) and (3) it can be shown that 1 + Rf = (1+Rd) (1+Rc) and Rf = Rd + Rc + RdRc Since the product of Rd and Rc would be small......... Taking variance of this approximation as a measure of risk to an international investor in domestic stock we have VarRf = VarRd + VarRc + 2(Correlation of Rd and Rc) (Std. it can be concluded that Rf approximates to (Rd+Rc).X0P0) /X0P0 ......... The domestic return in India on this stock can be labeled Rd..

the larger the cap size. Roughly speaking. the company could encounter unforeseen factors that inhibit the increase in the value of the stock. In Smallcap and Midcap indices the numbers of companies are 464 and 221 respectively. but usually they are as follows: Largecap: Market Cap valued at more than $ 10 billion Midcap: Market cap valued between $ 2 billion and $ 10 billion Smallcap: Market cap valued at less than $ 2 billion In general. the enhanced potential for growth also carries an increased level of volatility. 12 . When this happens. midcap and smallcap. Smallcap and Midcap companies usually have a higher potential for future growth than largecap companies.Midcap stocks are more risky than large cap stocks and less risky than smallcap stocks. there is great potential for the price per share to increase over the short term. That number gives you the market value of the company. these appear to be an ideal investment. there are three basic categories of market capitalisation: largecap.The definitions for each of these might vary somewhat depending on whom you are talking to. 2005 with base index value 1000 to track the performance of companies with relatively smaller market capitalization. So it is useful to summarize the benefits and costs for India of having foreign inflows. However. which is one measure of the company's size. the more established the company and the more stable the price of its stock. For investors who wish to realize quick gains on their investments.but their stock tends to fluctuate more in price. As time goes on. the stock may become stagnant or even begin to fall in value.BSE introduced the new index series called 'BSE Midcap' index and 'BSE Smallcap' index on April 11. FOREIGN INSTITUTIONAL INVESTMENT: A COST . This is equal to the current market price of its stock multiplied by the number of shares of stock that it has outstanding. The market capitalisation of the company represents the total dollar value of the company's outstanding shares.BENEFIT ANALYSIS There are always some costs associated with a lot of benefits. Then what makes a small & midcap attractive to investors is the potential for growth that could result in a significant return on the shares of stock. Because the company issuing the stock is considered to be growing.

are less tolerant of malpractice by corporate managers and owners (dominant shareholder). unsettles many domestic investors. B) Knowledge Flows: The activities of international institutional investors help strengthen Indian finance. used as they are to the ongoing practices of Indian corporate. FIIs advocate modern ideas in market design. without interest in control. B) Possibility of Takeovers: While FIIs are normally seen as pure portfolio investors. FIIs. First. promote innovation. when adverse macroeconomic news. it may be easier for a globally diversified portfolio manager to be more dispassionate about India's prospects and engage in stabilizing trades. This will make others to also take out their money creating volatility in the market. D) Improving Market Efficiency: A significant presence of FIIs in India can improve market efficiency through two channels. such as a bad monsoon. ANALYSIS 13 . enhance competition in financial intermediation and lead to spillovers of human capital by exposing Indian participants to modern financial techniques and international best practices and systems. with their vast experience with modern corporate governance practices. Second. and fosters investment by Indian firms in the country.BENEFITS A) Reduced cost of Equity: FII investment reduces the required rate of return for equity. development of sophisticated products such as financial derivatives. C) Strengthening Corporate Governance: Domestic institutional and individual investors. improved efficiency and better shareholder value. FII participation in domestic capital markets often lead to vigorous advocacy of sound corporate governance practices. however. at the level of individual stocks and industries. COSTS A) Create Volatility: There are concerns that foreign investors may withdraw their money at the hint of a trouble in India or firm. FIIs may act as a channel through which knowledge and ideas about valuation of a firm or an industry can more rapidly propagate into India. enhances stock prices. portfolio investors can occasionally behave like FDI investors and seek control of companies that they have a substantial shareholding in. may not be inconsistent with India's quest for greater FDI. often accept such practices. even when these do not measure up to the International benchmarks of best practices. Such outcomes.

CORRELATION TEST: A) Midcap & Smallcap Indices Vs Sensex & Gross Purchase: SENSEX FII GROSS PURCHASE 0.545181642 -0. Sensex and Midcap & Smallcap Indices.111440389 0.561075571 0. First of all correlation between sensex and midcap & smallcap indices is carried out to verify relation between them. Correlation Test has been carried out to find the degree of association between the FII Gross Purchases and BSE Midcap & Smallcap Indices.794646577 (refer Annexture 1.2005 so for the purpose of statistical analysis I have considered four years monthly data from April-2005 to March-2009 of FII Investments.318073722 0.773371425 0. So first of all I 14 .947956419 0.BSE Midcap.584286285 Federal Bank Ltd Jain Irrigation Systems Ltd Lupin Ltd INDIAN HOTELS COMPANY LTD Voltas Ltd Tata Tea Ltd Mphasis Ltd SMALLCAP South Indian Bank Ltd Kesoram Industries Ltd Gammon India Ltd Raymond Ltd NIIT LTD United Breweries Holdings Ltd Bombay Dyeing & Manufacturing Company Ltd Mahindra Lifespace Developers Ltd TVS Motor Company Ltd Rain Commodities Ltd Table-2 Sensex of Bombay Stock Exchange is considered as the barometer of Indian Capital Market. Colgate Palmolive India Ltd FII SHAREHOLDING 0.584577343 0.342942159 -0.191815788 0.093306698 0.446184332 0.2.3) Table-1 B) Scripwise Price Vs FII Shareholding: MIDCAP INDEX SMALLCAP INDEX COMPANY NAME MIDCAP JSW Steel Ltd.056704137 0.356246159 -0.The introduction of Midcap & Smallcap Indices at Bombay Stock Exchange was on April 11.258261613 0.051450138 0.624952178 0.300078199 0. Midcap & Smallcap Indices and various scrips. I have considered closing price for Sensex.Smallcap & Sensex Indices and scripwise quarterly data of FII Shareholding.825463052 0.519389221 -0.619250624 0.189994534 0. United Phosphorus Ltd.FII Shareholding & Scripwise price.896880823 0.

An FII driven market can impact the real economy indirectly. By taking Gross Purchases I have tried to eliminate this mathematical error and used gross purchases fluctuations to find the relation between the two.Graph-5 clearly indicates this fact that whenever there are more purchases as compared to sales than there is increase in the value of Indices and whenever there are more sales as compared to purchases there is decrease in Indices. can act as a more direct link between equity and physical markets. June-2006 and November-2007 . interest rate prevailing in the market. volatility can be good in that if one shorts on the peaks. However. with greater money coming with greater volatility. This high degree of correlation further suggests that there is some Indirect/Direct correlation between the Midcap & Smallcap Indices and FIIs investments. From the Graph-2 between Smallcap Index and Sensex we can find co-movement between two indices leaving some months August-2005.618% in Jun-2005 to 25. Foreign institutional investment is certainly volatile in nature and its volatility has certainly posed some threats to the Indian stock market considering its influence on the market. Nov-2007 to Jan-2008 indicating negative correlation. Secondly. political factors. which cause a significant 15 .2007 in Midcap companies and from 11.FII invest in scrips of these Indices because they provide higher returns as compared to largecap scrips. the wealth effect’ where capital gains are translated into increased consumption and investment. Table-1 indicates a high degree of correlation between Midcap & Smallcap Indices and FIIs gross purchases. speculative trading. It would provide additional incentives for FII investment and this encourages further investment so that there is a tendency for any correction of price and when the correction begins it would have to lead by an FII pullout and can take the form of extremely sharp decline in the share prices. and is in contrast to the long term investment view of buy and hold. government policies related to specific sectors etc.This inference is further supported by high degree of correlation coefficient obtained between two variables in the Table-1 above. interest rate. Table-2 indicates varying degrees of correlation between FII shareholding and Scripwise price of sample companies of Midcap & Smallcap Indices but if we take the average of quarterly data of FII shareholding & Scripwise price it shows significant co-movement. This analysis indicates the impact of FIIs on Indices. FIIs are always considered to increase the volatility of market. The growing significance of FIIs in the Midcap & Smallcap Indices can be observed from the increase in average percentage share of FIIs in sample companies of Midcap & Smallcap Indices. and buys on the lows one can make money. March-2006. During the month of Dec-2007 the subprime losses caused the decrease in purchases by the FII. which has increased from 14. Increase in investment by FIIs cause sharp price increase.begin with analyzing the relation between Sensex and Midcap & Smallcap Indices. The possibility for money to be made via volatile markets is how short term market players like day traders hope to make money. FIIs gross purchases have been taken as independent variable to find the impact of FII because net investments involve negative values when there are more sales as compared to purchases but Midcap & Smallcap Indices values are always positive instead of major falls/gains in the Indices. when their behavior in the market exerts pressure on policy makers. Volatility is often viewed as a negative in that it represents uncertainty and risk.555% in Sep-2007 in Smallcap companies.04% in Dec.513% in Jun 2005 to 25. During Nov-2007 to Jan-2008 the FII purchases decreased because during the month of Oct-2007 Indian government took some strict measure to control the usage of the Participatory notes. Graph-5 represents the relation between gross purchases and gross sales. April-2006 and November-2007. We can see negative correlation between FII shareholding and Scripwise price of sample companies of Midcap & Smallcap Indices because only FIIs are not responsible for the fluctuations instead there are other factors like company specific factors. We can see from the graph that gross purchases are increasing from Apr-2005 to Mar-2006 & Jul-2006 to Oct-2007 and whenever gross sales are lower than gross purchases there is upward trend in both Indices leaving some exceptions as there are certain other factors like foreign exchange rate.which affect the indices movement. From the Graph-1 between Midcap Index and Sensex we can find co-movement between two indices leaving some months August-2005. This lead the FII to withdraw from the Indian market as they were not sure of how the measure taken by the govt will be implemented. Analysis of Graph-3 & Graph-4 indicates that there is a co-movement between the two variables barring the period Jun-2005 to Aug-2005. political conditions of the country etc. As the subprime losses mainly hit the US economy and the majority of FII participating in the Indian capital market are from US.

RESULTS 16 .change in the prices.

Indices rises. political factors. CONCLUSION 17 .  There is a continuous increase in FII shareholding of companies of Midcap & Smallcap Indices. government policies related to specific sectors etc. When there is a downward trend in FIIs due to huge selling.  The high degree of volatility in stock market is due to 1) The increase in investment by FIIs which increases stock indices that in turn increases the price and encourages further investments. there is decline in Midcap & Smallcap Indices. On the other hand if there is an upward trend in FII due to more gross purchases as compared to selling. interest rate prevailing in the market. speculative trading. 2) The FIIs manipulate the situation of boom in such a manner that they will wait till the index rises up to a certain height and exit at an appropriate time.  Together with FIIs there are also other factors which influence the movement of Indices and stock prices like company specific factors. This tendency increases the volatility further. In this event when any correction takes place the stock price decline and there will be pull out by the FII in a large number as earning per shares declines.  The movements in Midcap & Smallcap Indices and Sensex are highly correlated. There is a continuous increase in the number of registered FIIs and the Gross purchases made by them.  The movement of FIIs gross purchases follows almost significant influence on the movement of Midcap & Smallcap Indices.

FIIs have significant impact on the share prices of the Midcap & Smallcap Indices companies and their active trading behaviour. Lastly I would like to recommend that Government should certainly encourage Foreign Institutional Investment but should keep a check on the volatility factor. Results of the study shows the linkages between the FIIs inflows and the performance of Midcap & Smallcap Indices are robust and significant.In the Indian stock market FIIs have a disproportionately high level of influence on the market sentiments and price trends. Some of the actions that could be taken to ensure stability are  Strengthening domestic Institutional Investors  Operational flexibility to impart stability to the market  Knowledge activities and research programs 18 .Small and periodic shifts in their behavior leads to market volatility. Long term funds should be given priority and encouraged.

APPENDIX 19 .

HISTORICAL DATASHEET 20 .

FII REGISTERED IN INDIA FINANCIAL YEAR 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2001-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 DURING THE YEAR 0 3 153 197 99 59 59 56 84 48 51 83 145 131 247 253 232 Table-3 TOTAL REGISTERED 0 3 156 353 439 496 450 506 528 490 502 540 685 803 993 1219 1581 21 .

51 6993.8 70694.7 -2065.2 9465.5 46808.1 8212.7 103129 120455.18 6045.66 7397.42 9628.6 28273.54 31146.28 4798.9 53578.8 58223.21 4919.61 10609.3 17377.9 21863.51 5925.35 3680.5 29623.6 89510 94107.89 10370.8 68029.32 8788.11 7193.8 -1047.6 4774 33014.6 31563.9 47000.3 -10577.9 29458.7 32573.3 65557.7 -2690.3 124.85 7635.9 6065 50552.9 13696.51 15550.96 6912.29 2956.7 3771.6 24160.1 13872. Crore) Gross Gross Sales Net Purchase Purchase/Sales 15261.45 51568.96 24572.91 6470.43 8634.76 3235.99 15318.6 38427.7 47046.3 29197.86 10526.3 -17326.37 10124.42 12961.05 12454.5 4412.6 23739.6 49149.84 4396.6 5805.6 27866.52 9099.91 14090.1 -3805.11 4303.9 70322.1 76091.9 47506.2 24553.21 8553.6 27693.75 5348.7 1330.1 28031.2 26782.4 22098.02 13348.35 6144.1 71017.7 16308.11 6225.84 7413.48 6364.81 9397.6 979 60640.49 7766.04 5131.31 13786.3 63587.43 9788.37 14544.1 19290.47 3765.14 5697.99 17648.56 4175.6 16330.11 3304.06 9092.56 10398.12 5795.24 8891.8 31542.48 5778.56 9789.44 6715.27 3310.93 9919.08 6608.4 6527.5 4448.23 Smallcap Index close 3839.6 39826.62 5843.2 62083.4 589.1 19837.48 6591.72 6222.5 124882.7 64526.99 19363.4 31908.2 57585.44 17287.5 6705.29 5357.4 8070.2 39845.3 40415.6 61990.4 -4597.72 15644.46 14650.2 65750 -7526.5 6231.5 40830.62 7680.79 6891.3 76437.4 4896.61 3683.74 5384.02 2885.29 4798.4 -3410.32 7503.4 6532.74 37419.1 25589.99 6161.9 -14248.4 62969.75 14564.7 70198.17 5943.19 20286.3 109304.4 269 Midcap Index close 3049.96 12042.4 4574.31 9424.1 23535.48 5567.59 6647.3 4578.69 4952.03 4716.57 8133.9 28104.03 7730.31 16415.1 3220.6 51746.92 12938.3 61490.25 10743.4 1418.4 80988.71 17578.2 24983.8 31094.2 7571.5 5567.3 65539.9 46401.77 47412.7 15577.6 -3114.05 2941.49 4196.5 Table-4 22 .42 7422.1 5508.7 35603.38 5396.7 27591.6 -4917.73 6392.19 4427.6 80216.57 13461.48 7892.3 1403.13 5721.44 4381.1 -2820.1 21931 5762.4 18132.1 15522.53 12860.7 20056.5 32177.32 94.6 14355.2 -807.43 8135.64 5577.72 9647.2 34762.9 7939.9 45503.82 7138.Month April-2005 May-2005 June-2005 July-2005 August-2005 September-2005 October-2005 November-2005 December-2005 January-2006 February-2006 March-2006 April-2006 May-2006 June-2006 July-2006 August-2006 September-2006 October-2006 November-2006 December-2006 January-2007 February-2007 March-2007 April-2007 May-2007 June-2007 July-2007 August-2007 September-2007 October-2007 November-2007 December-2007 January-2008 February-2008 March-2008 April-2008 May-2008 June-2008 July-2008 August-2008 September-2008 October-2008 November-2008 December-2008 January-2009 February-2009 March-2009 FII INVESTMENT (Rs.6 -7937 49339.88 11699.93 9796.6 72068.04 6701.22 6574.1 22042.5 -8247.3 44701.07 5148.47 2758.2 49338.2 26455.8 51574.9 48467.74 6760.03 6718.29 3200.1 18948.42 7805.25 4300.08 6892.39 6427.13 7841.1 4122.24 11279.2 -1012.2 1447.37 5742.6 17291.65 3263.5 54748.62 8773.92 4064.54 5386.05 3106.29 5052.6 75966.53 4789.01 3246.5 39269.63 8060.63 Sensex close 6154.6 23330.6 25817.2 5419.94 23013.09 13072.61 9708.11 3339.7 5431.

85 11.43 21. 08 Dec .5 29.92 8. 07 Dec .35 35.12 10.85 807. 08 Dec .1 25.39 44.63 38.95 250.76 18. 07 Sep . 05 Mar . 06 Percentage Shareholding of FII 9.2 10.9 8.6 97.05 261. 08 Sep .8 19.74 15.55 311.4 408.1 470. 07 Mar .33 18. 05 Sep .15 7. 06 Jun . 06 Sep .1 901.54 28.45 851.27 28.36 29. 05 Mar .85 107. 06 Dec . 05 Dec .44 35. 05 Sep .03 26.57 34.24 35. 08 Jun . 08 Sep .25 240.34 19.16 Closing Price 251. 09 Jun . 05 Sep .03 26. 06 Sep .75 Federal Bank Ltd 23 .21 35. 06 Sep . 06 Jun .45 382.94 10. 08 Mar .34 10.6 401. 07 Mar .97 15.09 8.7 275. 08 Sep .27 34. 06 Mar .55 403. 06 Dec . 06 Mar .46 33.1 41. 06 Mar .25 211.78 4.45 819. 09 Jun .75 229.1 480.57 11.35 269.17 7.05 209.55 244.MIDCAP COMPANY JSW Steel UNITED PHOSPHORUS LTD COLGATE PALMOLIVE INDIA LTD Quarter Jun .19 9. 05 Dec .35 236. 05 Mar .05 388.8 262. 07 Sep .05 1318.75 243.15 285.65 166.51 26. 07 Dec . 05 Dec . 05 Mar .95 367. 08 Mar .35 355.83 5.41 26.84 7.4 369.5 332.45 611. 07 Sep .35 324.35 432.3 302.23 29.2 289. 06 Jun . 06 Jun . 08 Dec .83 10. 07 Jun .9 407. 08 Mar .2 348.3 280.23 35.06 9.39 11.49 43. 07 Dec .33 17.32 30.9 493. 06 Sep .1 396. 05 Sep .13 33.35 201. 08 Jun .36 29.15 308. 09 Jun . 06 Dec .74 23. 05 Dec .3 388.5 386.2 229.75 158. 08 Jun . 07 Mar . 07 Jun . 07 Jun .5 231.05 300.6 187.98 35.5 182.

77 12.55 111.25 612. 08 Dec .85 1018.89 10.46 22.87 23.92 11. 05 Mar .56 22.58 40. 07 Sep .05 24 .3 342.1 695.99 13. 07 Jun .15 633. 07 Jun . 09 Jun .43 22.3 154. 06 Jun .15 546.22 41.6 138. 05 Sep .3 171.05 1356. 06 Sep . 07 Mar .55 586.1 382. 07 Dec . 08 Dec .55 302.95 216.95 401.19 17.25 33.68 17.97 41.05 42. 07 Jun .17 19.Jain Irrigation Systems Ltd Lupin Ltd INDIAN HOTELS COMPANY LTD.6 42.05 645.75 217.85 719. 09 Jun .79 39.77 10.25 145. 08 Sep .07 23. 08 Jun .84 10. 08 Mar . 07 Dec . 08 Mar . 07 Sep .4 45.85 77. 08 Jun . 05 Dec . 06 Mar .35 1384. 06 Mar .94 13.7 275.7 493. 08 Sep .41 12.15 42.85 592.65 732. 05 Dec .22 41. 07 Mar . 08 Dec .98 40.49 38.98 11. 07 Sep . Dec .8 35.28 18.05 350.8 417. 06 Jun .05 335. 08 37. 06 Dec .33 21.15 159.05 605.25 12. 08 Mar .3 182 204.05 486.9 666. 08 Sep . 05 Dec .2 250. 06 Jun .45 766.1 42. 06 Dec .05 372.5 162 138.64 35.43 218.58 13.25 215.93 38.31 23.1 208. 06 Mar .85 689.6 43.2 624. 08 Jun . 09 Jun .99 13. 05 Mar .9 617. 07 Mar . 05 Sep .85 11.7 12.6 895 461.35 40. 08 Dec .43 24.15 67. 07 Sep .1 132.15 19. 06 Sep . 07 Jun .13 39.25 765 988.35 12.9 1143.93 41.4 150.12 33 39. 07 Mar . 07 Dec . 06 Mar .16 38.46 8.1 755. 05 Mar .31 39. 06 Sep .46 22.12 12. 05 Sep .55 480.32 22. 08 Sep . 06 Dec . 07 Dec . 08 Jun .89 42.

05 Sep .99 17.51 14.65 103. 06 Dec . 08 Sep .3 46.38 15. 07 Dec . 07 Sep .15 620.48 27. 07 Jun .83 11. 06 Sep .18 12. 09 Jun .55 185.08 24. 05 Mar .75 149.69 39.2 19. 08 Mar .4 84.63 26.09 17.47 11. 05 Dec . 07 Dec .66 13.61 9.2 Table-5 25 .4 18.25 328.9 189 156.84 23.17 11.33 29.79 16.99 26.15 585.75 802. 08 Dec . 05 Mar .05 249. 05 Dec .93 22.45 282. 06 Mar .03 22. 06 Mar .45 599.08 11. 08 Sep .34 31.6 200. 08 Jun . 08 Jun .6 12.1 214. 05 Sep .35 286 306.26 11.1 12.53 13.25 177. 07 Sep . 08 Mar .55 303.Voltas Ltd Tata Tea Ltd Mphasis Ltd Mar . 08 Dec .14 13. 06 Dec . 09 Jun .05 948.65 824.45 24.65 277.55 475.89 15. 07 Sep .95 123. 08 Dec .05 841.51 12.45 13.26 16. 07 Jun .95 669. 05 Sep .48 28. 07 Mar . 07 Dec .3 60. 06 Jun .05 607. 06 Dec . 06 Jun .75 773.8 111. 07 Mar . 06 Mar . 08 Jun . 05 Dec . 06 Sep .3 905.85 852. 06 Sep .47 12. 07 Mar . 06 Jun . 08 Sep .94 12.44 22.3 151.48 22.56 15.75 92.35 746.95 602.35 867. 07 Jun . 09 Jun .5 749.23 31.2 208.28 13.4 229.25 162.15 720.3 18.35 199.95 246.46 13.09 11.5 114.91 14.7 1004. 05 Mar . 08 Mar . 09 17.89 21.69 29.95 765.31 19.

58 29.25 222 139.45 69.75 163. 06 Jun .95 342. 06 Sep . 06 Mar . 05 Mar .7 403. 07 Percentage Shareholding of FII 1.35 138.58 6.67 13.9 5.3 541.05 341. 08 Sep .65 73.7 364.7 401.3 114.19 18.77 23.1 99 127.65 54.07 8. 08 Sep .21 28. 06 Jun .95 5.2 5.45 503.86 45.95 588 391. 07 Jun .06 10.63 Closing Price (Rs.96 4.84 43.79 30.75 255.04 41.3 216.7 61.42 9.9 215. 05 Mar . 05 Sep .74 25. 06 Mar .3 414. 07 Sep .64 4.07 46.26 25.99 9.94 39.71 35. 07 Dec .75 138.5 349. 06 Sep .35 264. 09 Jun . 05 Dec .75 51. 07 Sep .55 85. 05 Dec . 09 Jun .93 28.55 546.21 44.6 58 331. 08 Jun . 06 Sep .65 451. 08 Sep .15 406.94 3. 08 Mar .12 10.32 4.15 78.75 211. 06 Dec .9 6. 06 Dec . 08 Dec . 07 Jun .55 153. 05 Dec . 06 Jun . 05 Sep .1 163. 07 Sep . 07 Mar .5 301.81 32.6 595. 07 Dec .84 42. 06 Mar .4 135. 08 Mar .05 388.95 517.74 40.07 4. 06 Mar .34 31.64 5. 08 Jun .55 26 .98 4.48 20. 08 Mar . 07 Mar . 05 Dec .SMALLCAP COMPANY South Indian Bank Ltd Kesoram Industries Ltd Gammon India Ltd Raymond Ltd Quarter Jun . 08 Dec .2 100. 06 Dec . 05 Sep . 08 Dec .51 17. 09 Jun .72 5.8 34. 05 Sep .98 24. 06 Dec .05 11.6 419. 07 Dec . 07 Mar .1 400. 05 Mar .) 55. 07 Jun .95 453.55 390.73 7.75 56. 06 Jun .18 7.55 216.35 578.28 35.87 3.19 4.65 64.75 465.72 7.53 9.43 7. 06 Sep . 05 Mar . 08 Jun .9 5.9 24.85 103.84 3.33 27.05 410.

6 1243.2 324. 07 Jun .5 336.61 23.25 288. 08 Jun .35 29.15 160. 06 Sep .38 4.02 24. 07 Dec . 08 Jun .45 222.2 383.15 696. 05 Sep . 07 Dec . 08 Mar .49 13.15 51.2 946. 08 Mar . 05 Sep . 07 Sep . 05 Mar . 05 Dec . 09 Jun .78 40. 06 Jun . 08 Sep .55 193.49 14.85 573.56 9. 08 Dec .75 754.89 13.95 595 580.85 726.15 76.35 614.56 24.28 14.61 27.5 22.9 444.68 6.12 3.3 525.4 367. 08 Dec . 07 Sep .23 14. 08 Sep .09 5.1 755.95 140. 07 Mar .52 1. 05 Mar .33 15.45 345. 07 Sep .88 41.7 29.45 14.01 24.65 223.95 265. 07 Jun . 09 Jun .25 446. 08 Mar . 05 Dec . 08 Dec .63 18.7 107.05 359.51 13.15 167.95 717.9 11. 06 Dec .74 39.35 22.15 227. 06 Dec .95 437. 08 Mar .23 22.8 98 107.68 38.88 14.1 441.75 318. 06 Mar . 08 Dec . 07 Mar .25 108.65 75.86 42.8 28. 05 Dec .NIIT LTD United Breweries Holdings Ltd Jun . 08 Jun .44 3.45 26.35 24.42 41.97 43.8 371.52 4.8 1003.92 25.85 134.53 2.48 93.46 18.15 372. 06 Dec .63 20. 07 Sep .6 675. 06 Jun .3 581.88 28.76 27.54 2. 06 Sep . 07 Dec .75 156. 09 Jun .43 4.2 297.29 308. 09 Jun . 07 Mar .91 13.35 330. 08 Sep .5 609.55 20.07 15.71 43.66 34. 08 Sep .68 6.1 Bombay Dyeing & Manufacturing Company Ltd Mahindra Lifespace Developers Ltd 27 .45 24. 05 2. 05 Sep . 07 Jun .69 42. 08 Jun . 06 Sep . 05 Mar . 07 Dec .35 296. 06 Jun .63 4.4 524. 07 Mar .9 28.95 766.35 540. 06 Mar .75 296. 06 Mar .

45 413.49 26.35 178.75 90.65 6.74 23.8 124. 07 Sep .95 26. 06 Dec . 07 Sep .38 4 4. 06 Sep .45 32. 06 Jun . 06 Jun .86 6.5 22. 08 Jun .55 175.65 147.35 22.6 843.5 7.95 3.45 87. 09 Jun .95 47.43 2. 08 Jun .28 6 3.73 5. 06 Sep . 09 Jun .01 8.65 39. 05 Mar .1 5.3 555.78 22.44 1. 06 Jun . 08 Mar .9 876.58 274. 08 Jun .34 4. 08 Mar . 06 Sep .4 173.17 0 0 0 0 1. 06 Mar . 07 Mar . 05 Dec .96 13.TVS Motor Company Ltd Rain Commodities Ltd Sep .9 26. 07 Dec .05 140. 05 Dec . 08 Dec .1 177.65 185.93 21. 09 24.18 26. 08 Dec .2 603.15 132.85 195. 08 Dec . 05 Mar .05 92. 07 Jun .23 30. 06 Mar .02 7.93 7.2 426.41 4.2 119. 07 Mar .05 72. 07 Mar . 08 Sep .3 59.12 6. 05 Mar .9 70. 08 Sep . 07 Sep .3 568.43 6.05 170. 08 Mar .95 59.4 618. 06 Dec .73 12.65 12.68 4. 06 Dec . 07 Jun .25 342.9 462.9 807. 05 Sep . 05 Dec .05 97.44 4.65 22.61 7.75 87.6 60. 07 Dec .42 11.74 25.28 21.45 34.15 72.3 395.59 12. 07 Dec .99 26.69 26. 06 Mar .25 81 Table-6 28 .56 8. 05 Sep .75 100.76 4.05 74. 07 Jun .55 293. 08 Sep .

MIDCAP & SMALLCAP INDICES VS SENSEX 29 .

7 ce be 20 Ja mb r-2 07 Fe nu aer-2 007 br ry 0 0 u .20 06 v e obe200 De m r.008 r 20 M il-2 08 Ju ay.20 05 o 2 De v em ber-005 ce be 20 0 mb r-2 5 Ja e 0 Fe nua r-2 00 5 br ry.Smallcap Index Midcap Index 10000 12000 14000 16000 200 0 10000 2000 4000 6000 8000 0 Midcap Index 400 0 600 0 800 0 12000 0 M o n th Month M IDCAP Vs SEN SEX SM ALLCAP Vs SEN SEX S m a llc a p In d e x S e n s e x Graph-2 Graph-1 30 S ensex Ap r M il-2 Ju ay-200 5 ne 00 .6 Se Au July 2006 pte gu -2 0 m st .8 Se Au July 2008 pte gu -2 0 m st .2008 ne 00 Au July-200 8 Se pt gu -2 0 8 e s 0 O mb t -2 8 No cto er.06 No Octber.7 Se Au July 2007 pte gu -20 mb st.05 u 2 Mary .6 M ary 200 ar -2 7 Ap ch .07 n 20 J e-2 07 Se Au uly.207 r 0 M il-2 07 Ju ay.09 20 09 Ap r M il-2 Ju ay.008 arc 20 h.05 m No Octber.008 ve be 2 00 De m r.007 ve be 2 00 De m r.08 No Octber.0 05 n 20 J e-2 05 Se Au uly 005 pt gu -20 e s 0 O mb t -2 5 No cto er.07 2 Mary .7 M ary 200 ar -2 8 Ap ch .5 Se Au July 2005 pte gu -2 0 st .2 20 07 Dev em ber-007 ce be 20 Jambe r-20 07 Fe nua r-200 7 bru ry.006 ve ber 2 00 De m .5 M ary 200 ar -2 6 Ap ch .206 r 0 M il-2006 Ju ay-2 0 6 ne 00 .8 ce be 20 Jambe r-20 08 Fe nua r-2 00 8 br ry 08 u -2 Mary .005 ve ber 2 00 De m .6 ce be 20 Jamber-20 06 Fe nua r-2 00 6 br r y 06 u -2 Mary .006 arc 20 Ap h.0 06 n 20 J e-2 06 Se Au uly 006 pt gu -20 e s 0 O mb t -2 6 No cto er.007 arc 20 Ap h.200 7 ne 00 .20 08 v e obe200 De m r.07 O No ct oer.6 ce be 20 Ja mb r-2 06 Fe nu aer-2 006 br ry 0 0 u .006 r 20 M il-2 06 Ju ay.8 M ary 200 ar -2 9 ch 00 -2 9 00 9 0 Sensex 0 5000 5000 10000 15000 20000 25000 10000 15000 20000 25000 Sensex .009 arc 20 h.8 ce be 20 Ja mb r-2 08 Fe nu aer-2 008 br ry 0 0 u .2 005 br ry 00 u .5 ce be 20 Ja mb r-2 05 Fe nu aer.007 r 20 M il-20 07 Ju ay.007 pt gu 20 e s 0 O mb t -2 7 No cto er.08 Ap 2 r 0 M il-2008 Ju ay-2 0 8 ne 00 .

FII INVESTMENT VS MIDCAP & SMALLCAP INDICES 31 .

2006 ar -2 07 c Ap h-2007 M ril-2007 Juay-2007 n 0 Se Au Jule.008 br a ry 2 0 u .20 7 pt gu -2 07 e s 0 O m t-2 07 No ctober 00 De vember 20 07 ce b .2 00 br a ry 2 0 5 u M ar y .Gross Purchase Gross Purchase 0 100000 120000 140000 20000 40000 60000 80000 100000 120000 140000 20000 40000 60000 80000 0 Gross P urchas e Gross Purchase Month Month FII INVESTM ENT Vs SM ALLCAP FII IN VESTM EN T Vs M ID CAP Graph-4 Graph-3 32 Midc ap Index close 2000 4000 6000 Smallcap Index 8000 10000 12000 14000 16000 Smallcap Index close Ap M ril-2 a Ju y-2005 ne 00 Au Jul .00 br a ry 2 0 6 u M ar y .20 6 Ja mb r-2 06 Fe nu e r.20 6 pt gu y-2 06 e s 0 O m t-2 06 No ctober 00 .2005 ar -2 6 c Ap h-2006 0 M ril-2 06 a Ju y-2006 ne 00 Se Au Jul .2 06 Jamb e r-2006 Fe nu e r.2007 ar -2 08 c Ap h-2008 M ril-2008 Juay-2008 n 0 Se Au Jule.20 8 pt gu -2 08 e s 0 O m t-2 08 No ctober 00 .200 8 pt gu y-2 08 e s 0 O m t.2 08 Jamb e r-2008 Fe nu er.005 Feanube r.00 br ary 20 7 u M ar y .00 br a ry 2 0 8 u M ary .0 No ctober 200 7 De vember-20 7 ce b .20 7 e Ja mb r-2 07 Fe nu e r-2 007 br a ry 00 u M ar y .2007 ar -2 8 c Ap h-2008 0 M ril-2 08 a Ju y-2 008 ne 00 Se Au July.200 6 Se pt gu y-2 06 e s O m t.2 07 Jamb e r-2007 Fe nu e r.08 Ja b 2 Fe nu e r.6 De vember 20 0 ce be .20 5 Ja mb r-2 05 Fe nu e r-2 005 br a ry 00 u M ar y .2 05 J m e r.200 7 pt gu y-2 07 e s 0 O m t.0 No ctober 200 8 De vember-20 8 ce b .2005 ar -2 06 c Ap h-2006 M ril-2006 Juay-2006 n 0 Au Jule.8 De vember 20 0 ce be .0 M ary 2006 ar -2 7 c Ap h-2007 0 M ril-2 07 a Ju y-2 007 ne 00 Se Au July.00 No ctober 200 6 De vember-20 6 ce b .0 M ary 2008 ar -2 9 ch 00 -2 9 00 9 Ap M ril-2 Juay-2005 ne 0 Se Au Jul .006 br a ry 2 0 u .200 5 pt gu y-2 05 e s 0 O m t.0 No ctober 200 5 ve be -20 5 De m r ce b .20 8 m r.2008 ar -2 09 ch 0 -2 09 00 9 0 0 2000 4000 Midcap Index 6000 8000 10000 12000 .20 5 Se pt gu y-2 05 e s 0 O m t-2 05 No ctober 00 De vember 20 05 ce be .

VOLATILITY ANALYSIS 33 .

7 S ugu 2 0 ep 0 te st -2 7 m 00 O ber 7 c -2 N to b 0 0 ov e 7 em r.2 ua 00 r 6 M y-2 ar 0 c h 06 A 20 pr 06 ilM 2 00 ay 6 Ju -20 ne 0 6 Ju 200 A ly.2 0 D e c be 07 em r-2 b 0 Ja e r 07 nu -2 0 Fe a r 07 br y.8 ug 2 S ep us 00 t e t-2 8 m 0 O ber 0 8 ct -2 N ob 00 ov e 8 e rD mb 200 ec er 8 em -2 0 Ja be r 08 nu -2 Fe a r 008 br y.5 S ug 2 0 ep us 0 t e t -2 5 m 0 O ber 0 5 ct o b -20 N o v e 05 e rD mb 200 ec e 5 em r-2 0 Ja be r 05 nu -2 Fe a r 005 br y.6 ug 2 S ep us 00 te t -2 6 m 0 O ber 0 6 ct -2 N ob 00 o v er -2 6 e D mb 00 ec er 6 em -2 0 Ja be r 06 nu -2 Fe a r 006 br y.2 ua 0 0 r M y-2 7 ar 0 c h 07 A 20 pr 07 ilM 2 00 ay 7 Ju -20 ne 0 7 Ju 200 A ly.2 ua 0 0 r M y-2 9 ar 0 c h 09 -2 00 9 2000 4000 6000 Midcap & Smallcap Index 8000 10000 12000 14000 16000 .Gross Purchases & Sales 100000 120000 140000 20000 40000 60000 80000 A 0 M Gross Purchase Month Gross Sales Midcap Index Smallcap Index VOLATILITY ANALYSIS Graph-5 0 pr il20 ay 05 -2 Ju 0 ne 0 5 Ju 200 A ly.2 ua 0 0 r M y-2 8 ar 00 ch 8 A 20 pr 08 ilM 2 00 ay 8 Ju 20 ne 0 8 Ju 200 A ly.

SCRIPWISE IMPACT OF FII SHAREHOLDING ON PRICE MOVEMENT OF MIDCAP COMPANIES .

05 ec M . 0 8 n S .0 ec 8 M .0 ep 7 D .0 ep 8 D .0 9 200 400 800 600 1000 1200 1400 Percentage Shareholding Ju n S .0 ep 6 D . 07 p De . 05 ar Ju . 07 ar Ju . 06 c M . 08 ar . 0 7 n Se .0 9 900 800 700 600 500 400 300 200 100 0 Closing Price Closing Price .0 ec 7 M . 05 p De . 05 c M . Quarter Period % shareholding closing price Graph-6 closing price 0 Graph-7 Ju n Se . 06 ar Ju . 06 p De . 0 6 n Se . 05 ar Ju . 07 ar Ju . 0 6 n S .0 ep 5 D . 08 p De . 06 ar . Ju 0 7 n S . UNITED PHOSPHORUS LTD.0 ec 6 M . 0 8 n Se . 08 ar . 08 c M . 07 c M .Percentage Shareholding 50 45 40 35 30 25 20 15 10 5 0 10 20 15 25 30 35 0 5 Quarter Period % shareholding JSW STEEL LTD.

08 c M . 05 p De . Se 05 p . Quarter Period Graph-9 closing price Graph-8 closing price 400 350 300 250 200 150 100 50 0 Closing Price Ju n Se . Se 06 p De . 0 7 n Se . 07 ar Ju . 05 c M . 0 6 c . 06 p De .0 9 500 450 400 350 300 250 200 150 100 50 0 Closing Price . 06 ar Ju . M 06 ar . FEDERAL BANK LTD. Ju 08 n . 08 p De . Ju 06 n . Ju 0 7 n . Se 07 p De . 07 c M . 06 c M . 0 6 n Se . 05 ar . De 08 c M . 07 p De . 08 ar . 08 ar .0 9 Ju n . 0 7 c . Se 08 p .Percentage Shareholding Percentage Shareholding 10 12 14 0 2 4 6 8 45 40 35 30 25 20 15 10 5 0 % shareholding % shareholding Quarter Period COLGATE PALMOLIVE INDIA LTD. D 05 ec M . M 07 ar . 05 ar Ju . 0 8 n Se .

07 c M . 06 p De .Percentage Shareholding Percentage Shareholding 50 45 40 35 30 25 20 15 10 5 0 16 14 12 10 8 6 4 2 0 % shareholding % shareholding Quarter Period Graph-10 LUPIN LTD. 06 ar . 07 p De .0 9 Ju n Se . Ju 0 6 n Se . 08 p De . Quarter Period JAIN IRRIGATION SYSTEMS LTD. 08 ar . 0 8 n Se . 05 c M . Ju 0 8 n Se . 05 p De . Ju 07 n Se . 05 ar Ju . 08 ar .0 9 0 200 100 Closing Price 400 300 600 500 700 . Ju 0 7 n Se . 08 p De . 07 p De . Graph-11 closing price 0 200 Closing Price 400 600 800 1000 1200 closing price Ju n Se . 08 c M . 06 ar . 07 ar . 0 6 n Se . 05 c M . 08 c M . 07 ar Ju . 06 p De . 06 c M . 05 p De . 05 ar . 06 c M . 07 c M .

05 c M . Quarter Period INDIAN HOTELS COM PANY LTD. 08 ar . 05 c M . 07 p De .0 9 Ju n Se . 05 p De . 06 n Se . 0 6 n Se . 07 c M . 0 p 8 De .Percentage Shareholding Percentage Shareholding 10 15 20 25 30 0 5 15 10 25 20 35 30 5 0 % shareholding Graph-12 VOLTAS LTD. 05 p De . 0 p 6 De . 0 7 n Se . 07 ar Ju . 05 ar Ju . 06 c M . 06 p De . 0 c 8 M . 07 n Se . 0 8 n Se . Quarter Periodclosing price % shareholding Graph-13 closing price 200 Closing Price 400 600 800 1000 1200 Ju n Se . 08 p De . 0 c 7 M . 0 c 6 M . 06 ar Ju . 07 p De .0 9 0 0 200 400 Closing Price 600 800 1000 1200 1400 1600 . 0 8 n Se . 05 ar Ju . 07 ar Ju . 08 c M . 06 ar Ju . 08 ar .

06 ar Ju . 05 ar Ju . 0 6 n Se . 0 6 n Se . 07 p De . 05 c M . M PHASIS LTD. 06 p De . 07 ar Ju . 08 ar . 08 c M . 05 ar Ju . 08 c M . 07 p De . 08 p De .0 9 1000 900 800 700 600 500 400 300 200 100 0 Closing Price .0 9 Ju n Se . 06 c M . 05 p De . 07 ar Ju . 06 c M . 08 p De . 07 c M . 05 c M . 0 7 n Se . 0 7 n Se . Quarter Period Graph-15 Graph-14 closing price closing price 0 50 Closing Price 100 150 200 250 300 350 Ju n Se . 06 ar Ju . 0 8 n Se . 0 8 n Se .Percentage Shareholding Percentage Shareholding 10 15 20 25 0 5 10 15 20 25 30 35 0 5 % shareholding % shareholding Quarter Period TATA TEA LTD. 07 c M . 08 ar . 06 p De . 05 p De .

SCRIPWISE IMPACT OF FII SHAREHOLDING ON PRICE MOVEMENT OF SMALLCAP COMPANIES .

08 c M . 0 7 n Se . 07 p De . Quarter Period closing price % shareholding Quarter Period KESORAM INDUSTRIES LTD. Ju 0 7 n Se .0 9 0 50 Closing Price 100 150 200 250 . 06 c M . 06 ar . 05 p De . 06 p De . 08 c M . 08 ar . 07 ar Ju . 08 p De . 0 8 n Se . 07 p De . 05 ar Ju . 06 c M .0 9 Ju n Se . 07 c M . 05 c M .Percentage Shareholding Percentage Shareholding 50 45 40 35 30 25 20 15 10 5 0 10 9 8 7 6 5 4 3 2 1 0 % shareholding Graph-16 SOUTH INDIAN BANK LTD. Graph-17 closing price 0 100 200 Closing Price 300 400 500 600 700 Ju n Se . 08 ar . 06 p De . 05 ar Ju . 07 c M . 06 ar Ju . 07 ar Ju . 0 6 n Se . 05 c M . 05 p De . 0 6 n Se . 08 p De . 0 8 n Se .

05 ar Ju . 08 c M . 07 c M . 08 p De . 05 ar Ju . 06 ar Ju . 0 7 n Se . 06 c M . 08 c M . 07 c M . R AYM ON D LTD . 0 8 n Se . 05 p De . 07 ar Ju . 0 6 n Se .0 9 Ju n Se . 06 ar Ju . 08 p De . 0 8 n Se . 05 p De . 0 7 n Se . 0 6 n Se . Quarter Period Q uarter P eriod Graph-19 c los ing price Closing Price 200 300 400 500 600 c los ing pric e Ju n Se .0 9 300 200 100 0 700 600 500 400 0 100 Closing Price . 08 ar . 05 c M . 06 p De . 07 p De . 05 c M . 06 c M . 07 p De . 06 p De .Percentage Shareholding 10 12 4 6 8 Percentage Shareholding 40 35 30 25 20 15 10 5 0 0 2 % shareholding Graph-18 % s hareholding GAM M O N IN D IA LTD . 08 ar . 07 ar Ju .

08 ar . 0 6 n Se . 06 p De . 0 8 n Se . 08 c M . 05 c M . 0 7 n Se . 05 ar Ju . 07 p De .0 9 0 0 200 200 Closing Price 400 600 800 1000 1200 . Graph-21 closing price Closing Price 400 800 600 1000 1200 1400 closing price Ju n Se . 08 p De . 06 c M . 05 ar Ju .Percentage Shareholding Percentage Shareholding 100 90 80 70 60 50 40 30 20 10 0 10 20 15 25 30 35 0 5 % shareholding Graph-20 % shareholding N IIT LTD . 07 c M . 07 ar Ju . 08 p De . 06 c M . 07 ar Ju . 05 p De . 08 c M . 0 6 n Se . 07 c M .0 9 Ju n Se . 06 ar Ju . 0 8 n Se . 07 p De . 05 c M . 06 p De . 08 ar . 05 p De . Quarter Period Quarter Period UN ITED B REWER IES HOLD IN GS LTD . 0 7 n Se . 06 ar Ju .

Percentage Shareholding Percentage Shareholding 16 14 12 10 8 6 4 2 0 10 15 20 25 30 35 0 5 % shareholding Graph-22 Quarter Period % shareholding closing price Quarter Period BOM BAY DYEING & M ANUFACTURING COM PANY LTD. 06 p De .0 9 Ju n S e . 06 ar Ju . 07 p De . 07 c M . 07 c M . 08 ar . 06 p De . 08 c M . 07 p De . 05 ar Ju . 06 c M . 06 ar Ju . 08 p De . M AHIN D R A LIFESPACE D EVELOPER S LTD . 05 p De . 08 c M . 05 ar Ju . 06 c M .0 9 900 800 700 600 500 400 300 200 100 0 1000 900 800 700 600 500 400 300 200 100 0 Closing Price . 0 8 n S e . 0 6 n Se . 08 ar . 08 p De . 05 p De . 07 ar Ju . 0 8 n Se . Graph-23 c los ing price Closing Price Ju n Se . 0 7 n Se . 07 ar Ju . 05 c M . 0 7 n Se . 05 c M . 0 6 n S e .

07 p De .Percentage Shareholding Percentage Shareholding 10 12 14 0 2 4 6 8 9 8 7 6 5 4 3 2 1 0 % shareholding Graph-24 % s hareholding Quarter Period RAIN COM M ODITIES LTD.0 9 0 50 160 140 120 100 80 60 40 20 0 Closing Price . 0 8 n Se . 06 p De . 07 p De . 08 p De . 06 p De . 07 c M . 08 c M . 05 p De . Quarter Period TVS M OTOR COM PAN Y LTD . 0 7 n Se . 05 c M . 0 6 n Se . 08 ar . 07 ar Ju . 06 ar Ju . 0 6 n Se . 06 c M . 0 7 n Se . 08 p De . 0 8 n Se . 06 c M . 05 p De . 05 ar Ju . 05 c M . 05 ar Ju . 06 ar Ju . 07 c M .0 9 Ju n Se . 08 c M . 07 ar Ju . 08 ar . Graph-25 closing price Closing Price 100 200 150 250 300 350 c los ing pric e Ju n Se .

com www.in www.REFERENCES Research Papers:  S S S Kumar 'Role of Institutional Investors in Indian Stock Markets'  Suresh Babu.com www.bseindia.com/indices/bse/bsesmallcap www.com www.org/wiki/Foreign_Institutional_Investor http://money.A.com . (2004) ‘Securities Analysis and Portfolio Management’ Websites:        http://en.gov. (2003) ‘Foreign Investment in India  Avadhani.wikipedia.P. (2001) ‘FII flows to India: Nature and causes’ Books:  Chopra. (2008) ‘Causal relationships between Foreign Institutional Investments and stock returns in India’  Chakrabarti.rediff.myiris. and Prabheesh. R. M.sebi. K. V.coolavenues.moneycontrol. C.

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