ABSTRACT:

"The whole is much more than just the sum of the parts"Aristotle
An economy, apart from everything else, is a highly fluid transmission mechanism. Its beauty lies in how
the smallest of changes have the most complex trickle-down effects. A paradigmatic example of how
seemingly minor policy changes can jumpstart the economy can be illustrated by examining the effects
liberalization on capital market in India.
Globalization had led to widespread liberalization and implementation of financial market reforms in many
countries, mainly focusing on integrating the financial markets with the global markets. Indian Capital
Market has also undergone metamorphic reforms in the past few years. Every segment of Indian Capital
Market viz primary and secondary markets, derivatives, institutional investment and market intermediation
has experienced impact of these changes which has significantly improved the transparency, efficiency and
integration of Indian market with the global markets.
This is one of the prime reasons why the foreign portfolio investments have been increasingly flowing into
the Indian markets. A significant part of these portfolio flows to India comes in the form of Foreign
Institutional Investors (FIIs) investments, mostly in equities. Ever since the opening of the Indian equity
markets to foreigners, FII net investments have steadily grown. Thus, we can see that there has been a
consistent rise in the FII inflows into the country.
While the concerns such as FII pulling back their investments and the kind of destabilizing effect on the
capital market in India are all well-placed, comparatively less attention have been paid so far to analyzing
the FII flows data and understanding their key features. A proper understanding of the nature and
determinants of these flows, however, is essential for a meaningful debate about their effects as well as
predicting their chances of their sudden reversals. Thus this project aims at studying the role of these
Institutional investors and its impact on the capital markets in India .This also aims to find out the various
factors and determinants for their investments and also cite out scenarios where in these investments when
pulled back by these FII could really effect the capital markets in India.
Institutional investors are a permanent feature of the financial landscape, and their growth will continue
at a similar and perhaps faster pace. The factors that underpin their development are far from transitory
and in many cases have only just started having an impact. The behavioral characteristics of institutional
investors, therefore, will be an increasingly important determinant of domestic and international financial
market conditions, and the implications for financial market stability warrant serious consideration"
Bank for International Settlements, Annual Report 1998, p95.

EXECUTIVE SUMMARY:
The objective of the project is to find the different role of institutional investors in the capital market in
india and then to find the role of institutional investors in the major volatile episode in the capital market in
india.Finaly to find the relationship between the Sensex variation with the variation of the investments made
by the institutional investors. India opened its stock markets to foreign investors in September 1992 and has,
since 1993, received considerable amount of portfolio investment from foreigners in the form of Foreign
Institutional Investors (FII) investment in equities. While it is generally held that portfolio flows benefit the
economies of recipient countries, policy makers worldwide have been more than a little uneasy about such
investments. Portfolio flows-often referred as hot money-are notoriously volatile compared to other types
of capital inflows. Investors are known to pull back portfolio investments at the slightest hint of trouble in
the host country often leading to disastrous consequences to its economy. They have been blamed for
exacerbating small economic problems in a country by making large and concerted withdrawals at the first
sign of economic weakness. The methodology used to is regression analysis. The degree of association
helps us to quantify the relation ship between the variation in sensex due to the variation in the net
investments made by the institutional investors.
After completeing the project I could recommend that Government should certainly encourage foreign
institutional investment but should keep a check on the volatility factor. Long term funds should be given
priority and encouraged 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 To conclude with I would say the that the foreign funds is
certainly one of the most important cause of volatility in the Indian stock market and has had a considerable
influence on it. Although it would not be fair enough to come to any conclusion as there are a lot of other
factors beyond the scope of the study that effect returns and risks .it is not easy to predict the nature of the
macroeconomic factors and their behavior but it has a great significance on any economy and its elements.
Although generally a positive relation has been seen between the stock market returns and the FII inflows it
is not easy to say which is the cause n which is the effect.
1. INTRODUCTION:

Financial markets are the catalysts and engines of growth for any nation. Indias financial market began its
transformation path in the early 1990s. The banking sector witnessed sweeping changes, including the
elimination of interest rate controls, reductions in reserve and liquidity requirements and an overhaul in
priority sector lending. Persistent efforts by the Reserve Bank of India (RBI) to put in place effective
supervision and prudential norms since then have lifted the country closer to global standards. Around the
same time, Indias capital markets also began to stage extensive changes. The Securities and Exchange
Board of India (SEBI) was established in 1992 with a mandate to protect investors and usher
improvements into the microstructure of capital markets, while the repeal of the Controller of Capital
Issues (CCI) in the same year removed the administrative controls over the pricing of new equity issues.
Indias financial markets also began to embrace technology. Competition in the markets increased with the
establishment of the National Stock Exchange (NSE) in 1994, leading to a significant rise in the volume
of transactions and to the emergence of new important instruments in financial intermediation.
Indian investors have been able to invest through mutual funds since 1964, when UTI was established.
Indian mutual funds have been organized through the Indian Trust Acts, under which they have enjoyed
certain tax benefits. Between 1987 and 1992, public sector banks and insurance companies set up mutual
funds. Since 1993, private sector mutual funds have been allowed, which brought competition to the
mutual fund industry. This has resulted in the introduction of new products and improvement of services.
The notification of the SEBI (Mutual Fund) Regulations of 1993 brought about a restructuring of the
mutual fund industry. An arms length relationship is required between the fund sponsor, trustees,
custodian, and asset Management Company. This is in contrast to the previous practice where all three
functions, namely trusteeship, custodianship, and asset management, were often performed by one body,
Usually the fund sponsor or its subsidiary. The regulations prescribed disclosure and advertisement norms
for mutual funds, and, for the first time, permitted the entry of private sector mutual funds. FIIs registered
with SEBI may invest in domestic mutual funds, whether listed or unlisted. The 1993 Regulations have
been revised on the basis of the recommendations of the
Mutual Funds 2000 Report prepared by SEBI. The revised regulations strongly emphasize the governance
of mutual funds and increase the responsibility of the trustees in overseeing the functions of the asset
management company. Mutual funds are now required to obtain the consent of investors for any change in
the fundamental attributes of a scheme, on the basis of which unit
13
holders have invested. The revised regulations require disclosures in terms of portfolio composition,
transactions by schemes of mutual funds with sponsors or affiliates of sponsors, with the asset Management
Company and trustees, and also with respect to personal transactions of key personnel of asset management

companies and of trustees.

India opened its stock markets to foreign investors in September 1992 and has, since 1993, received
considerable amount of portfolio investment from foreigners in the form of Foreign Institutional Investors
(FII) investment in equities. This has become one of the main channels of portfolio investment in India for
foreigners. In order to trade in Indian equity markets, foreign corporations need to register with the SEBI as
Foreign Institutional Investor (FII). SEBIs definition of FIIs presently includes foreign pension funds,
mutual funds, charitable/endowment/university funds etc. as well as asset management companies and other
money managers operating on their behalf
The sources of these FII flows are varied .The FIIs registered with SEBI come from as many as 28
countries(including money management companies operating in India on behalf of foreign investors).US
based institutions accounted for slightly over 41% those from the U.K constitute about 20% with other
Western European countries hosting another 17% of the FIIs.
Portfolio investment flows from industrial countries have become increasingly important for developing
countries in recent years. The Indian situation has been no different. A significant part of these portfolio
flows to India comes in the form of FIIs investments, mostly in equities. Ever since the opening of the
Indian equity markets to foreigners, FII investments have steadily grown from about Rs.2600 crores in 1993
to over Rs.272165 crores till the end of Feb 2008.
While it is generally held that portfolio flows benefit the economies of recipient countries, policy makers
worldwide have been more than a little uneasy about such investments. Portfolio flows- often referred as
hot money-are notoriously volatile compared to other types of capital inflows. Investors are known to pull
back portfolio investments at the slightest hint of trouble in the host country often leading to disastrous
consequences to its economy. They have been blamed for exacerbating small economic problems in a
country by making large and concerted withdrawals at the first sign of economic weakness. They have also
been responsible for spreading financial crisis - causing contagion in international financial markets.
International capital flows and capital controls have emerged as an important policy issues in the Indian
context as well. The danger of abrupt and sudden outflows inherent with FII flows and their destabilizing
effect on equity and foreign exchange markets have been stressed.
The financial market in India have expanded and deepened rapidly over the last ten years. The Indian capital
markets have witnessed a dramatic increase in institutional activity and more specifically that of FIIs. This
change in market environment has made the market more innovative and competitive enabling the issuers of
securities and intermediaries to grow. In India the institutionalization of the capital markets has increased
with FIIs becoming the dominant owner of the free float of most blue chip Indian stocks. Institutions often
trade large blocks of shares and institutional orders can have a major impact on market volatility. In smaller
markets, institutional trades can potentially destabilize the markets. Moreover, institutions also have to
4

design and time their trading strategies carefully so that their trades have maximum possible returns and
minimum possible impact costs.
2. OBJECTIVE OF TH E PROJEC T:
To Study the Impact of Institutional Investors especially the FII on the capital market in India.
To study the major Episodes of volatility in India and analyzing the impact of Institutional
investors in these episodes.
To quantify the relation between FII flows and their relationship with economic variables,
particularly with NIFTY.
3. METHODOLOGY:
For covering the Theoretical part I shall be going through a lot of literature including books on FII & Capital
Market. Beyond this I shall be tracking the performance of FII through the help of internet. To Study the
major episodes of volatility in India, I would be reading through a lot of literature, articles, and magazines
and visiting various sites for their comments during that period.
For the study purpose, I will take only NIFTY that is the National Stock Exchange (NSE) benchmark
Index is considered. This is because the larger chunk of FII activity in India happens on the NSE. NSE
is the dominant exchange in India with close to 75% of cash market turnover and well over 90% of
derivatives turnover in India happening on the NSE. The daily index volatility and volatility in daily
FII cash flows were studied and daily FII volatility on the Nifty volatility. On the information so
gathered I will be running SPSS analysis & reaching onto the conclusion.
Thus throughout the project I shall be making use of secondary data.
4. INSTITUTIONAL INVESTOR:
An institutional investor is an investor, such as a bank, insurance company, retirement fund, hedge
fund, or mutu al fund that is financially sophisticated and makes large investments, often held in very
large portfolios of investments. Because of their sophistication, institutional investors may often
participate in private placements of securities, in which certain aspects of the securities laws may be
inapplicable.

5. TYPES OF INSTITUTIONAL INVESTOR

5.1. DOMESTIC INSTITUTIONAL INVESTOR
is used to denote an investor - mostly of the form of an institution or entity . which invests
money in the financial markets )f its own country where the institution or entity was originally
incorporated. In India, there are broadly four types of institutional investors.

Domestic
Institutional
Investors
Developmental
Financial
Institution

Insurance
Comapnies

Banks

Asset
management
Companies

5.1.1 DEVELOPMENTAL FINANCIAL INSTITUTIONS like Industrial

Finance Corporation of India (IFCI), Industrial Credit and Investment
Corporation of

India (ICICI), Industrial Development Bank of India (IDBI), the State Financial Corporations, etc. The
role played by these financial institutions (FIs) is to extend funds to the companies for both long term
financing and (more recently) working capital financing. The financial institutions extend both debt and
equity financing to their nominee directors in the companies.
5.1.2 INSURANCE COMPANIES like the Life Insurance Corporation (LIC), General
Insurance Corporation (GIC), and their subsidiaries.
5.1.3 BANKS: Earlier banks used to finance only the working capital of the companies.
But now they are also extending long-term finance to the companies.
5.1.4 ASSET MANAGEMENT COMPANIES all the mutual funds including Unit Trust
of India (UTI). The mutual funds collect funds from both individuals and corporate to
invest in the financial assets of other companies. In India, the mutual funds participate
largely in the equity capital of the companies. The mutual fund industry which is the major
institutional investors in India started in 1963 with the formation of Unit Trust of India, at
the initiative of the Government of India and Reserve Bank.
The history of mutual funds in India can be broadly divided into four distinct phases
First Phase: 1964-1987, Unit Trust of India (UTI) was established on 1963 by an Act
of Parliament.
Second Phase : 1987- 1993, Entry of Public Sector Funds .1987 marked the entry of
non- UTI, public sector mutual funds set up by public sector banks and Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India (GIC).
Third Phase: 1993-2003, Entry of Private Sector Funds in 1993. Kothari Pioneer (now
merged with Franklin Templeton) was the first private sector mutual fund registered in
July 1993.As at the end of January 2003;
there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The
17
Unit Trust of India with Rs.44, 541 crores of assets under management was way ahead of
other mutual funds.
Fourth Phase: 2003-2007 In Feb 2003 the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules framed by Government of India. The second is
the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with
SEBI and functions under the Mutual Fund Regulations.

5.2 FOREIGN INSTITUTIONAL INVESTOR (FII)

is used to denote an investor - mostly of the form of an institution or entity which invests money in the
financial markets )f a country different from the one where in the institution or entity was originally
incorporated.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. In countries like India statutory agencies like SEBI
have prescribed norms to register FIIs and also to regulate such investments flowing in through FIIs.
Pension

Funds

Mutual

Funds

Investment Trust
Insurance or reinsurance companies
Endowment Funds University Funds
Foundations or Charitable Trusts or Charitable Societies Asset
Management Companies Nominee Companies Institutional
Portfolio Managers Trustees
Power of Attorney Holders Bank

5.2.1

SOURCES OF FII IN INDIA:

The sources of these FII flows are varied. The FIIs registered with SEBI come from as many as 28
countries (including money management companies operating in India on behalf of foreign
investors). US-based institutions accounted for slightly over 41%; those from the UK constitute
about 20% with other Western European countries hosting another 17% of the FIIs. It is, however,
instructive to bear in mind that these national affiliations do not necessarily mean that the actual
investor funds come from these particular countries. Given the significant financial flows among the
industrial countries, national affiliations are very rough indicators of the home of the FII
investments. In particular institutions operating from Luxembourg, Cayman Islands or Channel
Islands, or even those based at Singapore or Hong Kong are likely to be investing funds largely on
behalf of residents in other countries. Nevertheless, the regional breakdown of the FIIs does provide
an idea of the relative importance of different regions of the world in the FII flows.

Sources, of FIIs in India

Source: SEBI web site

6. CAPITAL MARKET IN INDIA

10

The Bombay Stock Exchange (BSE), which began formal trading in 1875, is one of the oldest
in Asia. Over the last decade, there has been a rapid change in the Indian securities market,
both in primary as well as the secondary market. Advanced technology and online-based
transactions have modernized
the stock exchanges. In terms of
the number of companies listed
and total market capitalization,
the Indian equity market is
considered large relative to the
countrys stage of economic
development. Currently, there are 40 mutual funds, out of which 33 are in the private sector and 7 are in the
public sector. Mutual funds were opened to the private sector in 1992. Earlier, in 1987, banks were allowed
to enter this business, breaking the monopoly of the Unit Trust of India (UTI), which maintains a dominant
position. Before 1992, many factors obstructed the
expansion of equity trading. Fresh capital issues were controlled through the Capital Issues Control
Act. Trading practices were not transparent, and there was a large amount of insider trading.
Recognizing the importance of increasing investor protection, several measures were enacted to
improve the fairness of the capital market. The Securities and Exchange Board of India (SEBI) was
established in 1988. There have been significant reforms in the regulation of the securities market
since 1992 in conjunction with overall economic and financial reforms. In 1992, the SEBI Act was
enacted giving SEBI statutory status as an apex regulatory body. And a series of reforms was
introduced to improve investor protection, automation of stock trading, integration of national
markets, and efficiency of market operations. India has seen a tremendous change in the secondary
market for equity.
Among the processes that have already started and are soon to be fully implemented are electronic
settlement trade and exchange-traded derivatives. Before 1995, markets in India used open outcry, a
trading process in which traders shouted and hand signaled from within a pit. One major policy
initiated by SEBI from 1993 involved the shift of all exchanges to screen-based trading, motivated
primarily by the need for greater transparency. The first exchange to be based on an open electronic
limit order book was the National Stock Exchange (NSE), which started trading debt instruments in
June 1994 and equity in November 1994. In March 1995, BSE shifted from open outcry to a limit
order book market. Before 1994, Indias stock markets were dominated by BSE. In other parts of the
country, the financial industry did not have equal access to markets and was unable to participate in
forming prices compared with market participants in Mumbai (Bombay). As a result, the prices in

11

markets outside Mumbai were often different from prices in Mumbai. These pricing errors limited
order flow to these markets. Explicit nationwide connectivity and implicit movement toward one
national market has changed this situation. NSE has established satellite communications which give
all trading members of NSE equal access to the market. Similarly, BSE and the Delhi Stock Exchange
are both expanding the number of trading terminals located all over the country. The arbitrages are
eliminating pricing discrepancies between markets.
The Indian capital market still faces many challenges if it is to promote more efficient allocation and
mobilization of capital in the economy.

12

First, market infrastructure has to be improved as it hinders the efficient flow of

information and effective corporate governance.
Second, the trading system has to be made more transparent.
Third, India may need further integration of the national capital market through
consolidation of stock exchanges.
Fourth, the payment system has to be improved to better link the banking and securities
industries.
The capital market cannot thrive alone; it has to be integrated with the other segments of the
financial system. The global trend is for the elimination of the traditional wall between banks and
the securities market. Securities market development has to be supported by overall
macroeconomic and financial sector environments. Further liberalization of interest rates, reduced
fiscal deficits, fully market-based issuance of Government securities and a more competitive
banking sector will help in the development of a sounder and a more efficient capital market in
India.
7. INSTITUTIONAL INVESTORS REGISTERED IN INDIA: 7.1
MUTUAL FUNDS REGISTERED IN INDIA:

Mutual Funds Registered in India

1964-87

1987-93

1993-03

40

2003-07

During the year Total Registered at the end of the Year

From the bar chart above it is clearly evident that the mutual fund industry is still at a

13

14

nascent stage as compared to the FIIs. Since its inception in 1964 when the first mutual fund i.e.
UTI had the monopoly for 25 years. It was thus in the year after 1989 that public sector banks and
financial institution started their AMC .Finally in the third phase when private players entered the
arena, it lead to a fierce battle to hold the top slot in the Indian mutual fund industry .The growing
number of mutual fund companies corroborates the fact that Indian public are now looking for
different avenues to invest their earnings and are confident on the working of capital market in
India. This shows that SEBI has in a way restored the faith of these investors in spite of the
different scams that rocked the capital market in India.
7.2 FII REGISTERED IN INDIA:
Lets look at some of the data to get an idea about the trend of FIIs in India, and also to see
the future direction of their movement.
India had 528 FIIs were registered with SEBI by end of 2001 and by end of Feb-2008 the
number increased to1303. The trend in the number of registered FIIs has been consistently
on the rise as can be seen from the table; showing the significant amount of confidence that
Indian Capital market has developed in the last few years.

Not only has been the number increasing on a consistent basis, but the amount of inflow
into Indian market has also seen a manifold increased. The gross purchase, sales and net
investment figure on an annual basis gives a fair idea about the consistency of their
investments in our country.
As we can see in the investment trends table, except for 1998, the net investment by the FIIs
in the Indian market has always been positive since liberalization which to a large extent tells

15

about the consistency of their presence in Indian market. This is also evident from the fact
that the number of FII registering in India is increasing in spite of the fact that SEBI has
declined to issue any further PN notes and also asked them to get registered. This shows that
India still remains the hot spot for the foreign investors in the coming years.
8 MAJOR INSTITUTIONAL INVESTORS IN INDIA
The total number of Domestic institutional investors specially the mutual funds is 40 in number.
Similarly insurance companies and other banks are very large in number. But out of these there
are some heavy weights which solely by their investments are among the top 5 domestic
institutional investors in india.Among the total FII registered i.e. 1303 by the end of feb 2008 the
top 5 FII in terms of their investment in India are listed below.

8.1.1.

LIFE INSURANCE CORPORATION OF INDIA.

Life Insurance in its modern form came to India from England in the year 1818. The
first two decades of the twentieth century saw lot of growth in insurance business.
From 44 companies with total business-in-force as Rs.22.44 crore, it rose to 176

16

companies with total business-in-force as Rs.298 crore in 1938. During the

mushrooming of insurance companies many financially unsound concerns were also
floated which failed miserably. However, it was much later on the 19th of January,
1956, that life insurance in India was nationalized. About 154 Indian insurance
companies, 16 non-Indian companies and 75 provident were operating in India at the
time of nationalization. Nationalization was accomplished in two stages; initially the
management of the companies was taken over by means of an Ordinance, and later, the
ownership too by means of a comprehensive bill. The Parliament of India passed the
Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance
Corporation of India was created on 1st September, 1956, with the objective of
spreading life insurance much more widely and in particular to the rural areas with a
view to reach all insurable persons in the country, providing them adequate financial
cover at a reasonable cost.
LICs emergence as the biggest investor in the country should not surprise anyone. The stateowned company is 51 years old and enjoyed a state-sanctioned monopoly over the life insurance
business till 2000. The firm has issued 220 million policies and earned total premium income of
Rs39, 541 crore in 2006-07. It is allowed to invest 35% of its funds in equities.
The largest chunk in LICs portfolio is the stake it owns in listed engineering giant
Larsen and Toubro Ltd. The 15.7% stake in L&T is valued at more than Rs19, 642
crore. Other major investments include a 4.14% stake in Reliance Industries Ltd, the
largest Indian company by market capitalization, 7.2 % in ICICI Bank Ltd, 13.4% in
ITC Ltd and 4.2 % in Reliance Communications Ltd.

17

8.1.2

RELIANCE MUTUAL FUNDS:

ReLiANce

Mutual Fund

Reliance Mutual Fund (RMF) is one of Indias leading Mutual Funds, with Average Assets
Under Management (AAUM) of Rs. 90,938 Crores (AAUM for Mar 08 ) and an investor base
of over 66.87 Lakhs.Reliance Mutual Fund, a part of the Reliance - Anil Dhirubhai Ambani
Group, is one of the fastest growing mutual funds in the country. Reliance Capital Ltd. is one
of Indias leading and fastest growing private sector financial services companies, and ranks
among the top 3 private sector financial services and banking companies, in terms of net worth.
Reliance Capital Ltd. has interests in asset management, life and general insurance, private
equity and proprietary investments, stock broking and other financial services.
OlCICI PRLDENTlALTv/

8.1.3

ICICI PRUDENTIAL FUNDS:

ICICI Prudential Asset Management Company enjoys the strong parentage of prudential plc,
one of UK's largest players in the insurance & fund management sectors and ICICI Bank, a
well-known and trusted name in financial services in India. ICICI Prudential Asset
Management Company, in a span of just over eight years, has forged a position of preeminence in the Indian Mutual Fund industry as one of the largest asset management
companies in the country with assets under management of Rs. 37,906.24 crore (as of March
31, 2007). The Company manages a comprehensive range of schemes to meet the varying
investment needs of its investors spread across 68 cities in the country. Upon its inception in
May 1998 it manages 2 funds of Rs 160 Cr and has grown to manage 35 Funds worth Rs
62,008.95 Cr.

uti

LJ T I Mutual
Fu n d

8.1.4

UTI MUTUAL FUNDS:

UTI Mutual Fund came into existence on 1st February 2003. Bank of Baroda (BOB),
Punjab National Bank (PNB) and State Bank of India (SBI) and Life Insurance
Corporation of India (LIC) are the sponsors of the UTI Mutual Fund. UTI Mutual Fund
is managed by UTI Asset Management Company Private Limited (AMC). UTI AMC is
a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993
for undertaking portfolio management services and also acts as the manager and
marketer to offshore funds. UTI Mutual Fund has a nationwide network consisting 70
UTI Financial Centers (UFCs) and UTI International offices in London, Dubai and
Bahrain. The fund has a track record of managing a variety of schemes catering to the
needs of every class of citizenry.

8.1.5 HDFC MUTUAL FUND:

HDFC (Housing Development Finance Corporation Limited) is one of the dominant
players in the Indian mutual fund space. HDFC was incorporated in 1977 as the first
specialized Mortgage Company in India. HDFC Mutual Funds are handled by HDFC
Asset Management Company Limited. HDFC Asset Management Company was
incorporated under the Companies Act, 1956, on December 10, 1999, and was approved
to act as an Asset Management Company for the Mutual Fund by SEBI on July 3, 2000.
The company also provides portfolio management / advisory services.

8.2.1 DEUTSCHE
GROUP: Deutsche
Bank
DWS Investments part of Deutsche Asset Management, was founded in 1956 in
Frankfurt/Main. With fund assets under management of euro 267 bn, the company is
one of the Top 10 companies worldwide. In Europe, DWS is one of the leading mutual
fund companies and currently manages euro 173 bn. In excess of more than euro 147
bn assets under management, DWS represents 22, 3% of the fund market in Germany,
making it the unchallenged number one.
The International nature of its business differentiates DWS significantly from its
domestic and international competitors. DWS Investments activities span all the key
European markets. In the USA, DWS is represented by DWS Scudder and manages
assets of euro 86 bn. In spring 2006, it launched its first funds as well as the DWS
brand in Singapore and India, continuing its successful expansion in the
Asia-Pacific region. Thereafter, more funds were registered in other countries in AsiaPacific.

8.2.2 CITIGROUP:
The formation of Citigroup in 1998 created a new model of financial services organization to
serve its clients financial needs. As the company continues to grow and evolve, its
increasingly evident that such a large, complex grouping of businesses can indeed succeed.
With 275,000 employees working in more than 100 countries and territories, Citigroups
globality and diversity contribute to its continued success.
8.2.3

HSBC GLOBAL INVESTMENTS:

HSBC Investments is one of the world's premier fund management organizations. It has
established a strong reputation with institutional investors including corporations,
governments, insurance companies and charities the world over for delivering consistently
superior returns. In India we offer fund management services for institutional as well as retail
investors. Our array of products includes Equity Funds Income /Debt Funds.

8.2.4

MORGAN STANLEY &CO INTERNATIONAL LTD:

Morgan Stanley is a global financial services firm and a market leader in securities,
investment management and credit services. It has more than 600 offices in 27 countries and
manages $421 billion in assets for institutional and individual clients around the world.
Stanley Investment Management (MSIM), the asset management company of Morgan Stanley
was established in 1975. Morgan Stanley entered Indian market in 1989 with the launch of
India Magnum Fund. In 1994, Morgan Stanley launched Morgan Stanley Growth Fund
(MSGF). It is one of the largest private sector schemes investing in equities.

8.2.5

DSP MERRILL LYNCH :

DSP Merrill Lynch Mutual Funds are managed by DSP Merrill Lynch Fund Managers.
DSP Merrill Lynch Ltd. (DSPML) is a premier financial services provider and Merrill
Lynch (ML) holds 90% stake in DSPML. DSPML was originally called DSP Financial
Consultants Ltd. The firm traces its origins to D. S. Purbhoodas & Co., a securities and
brokerage firm with over 140 years of experience in the Indian market. Merrill Lynch
is one of the world's leading wealth management, capital markets and advisory

companies with offices in 37 countries and territories and total client assets of
approximately $1.5 trillion.
9. INVESTMENT TRENDS OF INSTITUTIONAL INVESTORS: 9.1
INVESTMENT TRENDS OF INDIAN MUTUAL FUND INDUSTRY:
The Assets under Management of UTI was Rs.4563 Cr by the end of 1987. Let me
concentrate about the performance of mutual funds in India through figures. From Rs.
4563 Cr. the Assets under Management rose to Rs. 32977 Cr in March 1993

The net asset value (NAV) of mutual funds in India declined when stock prices started falling
in the year 1992. Those days, the market regulations did not allow portfolio shifts into
alternative investments. There was rather no choice apart from holding the cash or to further
continue investing in shares.
A lone UTI with just one scheme in 1964 now competes with as many as 400 odd products
and 34 players in the market. In spite of the stiff competition and losing market share, Last six
years have been the most turbulent as well as exiting ones for the industry. New players have
come in, while others have decided to close shop by either selling off or merging with others.
Product innovation is now pass with the game shifting to performance delivery in fund
management as well as service. The industry is also having a profound impact on financial
markets. While UTI has always been a dominant player
on the bourses as well as the debt markets, the new generations of private funds, which have
gained substantial mass, are now flexing their muscles. Fund managers, by their selection criteria
for stocks have forced corporate governance on the industry. Rewarding honest and transparent
management with higher valuations has created a system of risk- reward created where the
corporate sector is more transparent then before.
Funds collection has been increasing in last 5 years which can be attributed to the fact of sound
economic growth and the confidence of the retail investors on the capital market of India.
9.2 FOREIGN INSTITUTIONAL INVESTMENT
(FII) is one of the main channels of foreign investment in India. Foreign institutional investors

(FIIs) were permitted to invest in Indian securities market in 1993. Since then, their investments
into Indian equity market have grown by leaps and bounds. In fact, FIIs, as a class of institutional
investors, have assumed a major role in mature and emerging market economies, in recent years.
The FII in the Indian equity markets has risen steadily since 2003-04. The gross purchases of debt
and equity together by FIIs increased by 50.0 per cent to Rs. 5,20,508 crore in 2006-07 from Rs.
3,46,978 crore in 2005-06.

INVESTMENTS BY FOREIGN INSTITUTIONAL INVESTORS

The gross sales by FIIs also rose by 60.3 per cent to Rs. 4, 89,667 crore from Rs. 3, 05,512
crore during the same period. However, the net investment by FIIs in 2006-07
declined by 25.6 per cent to Rs. 30,840 crore in 2006-07 from Rs. 41,467 crore in 2005 06 mainly due
to large net outflows from the equity segment. But the cumulative net investment by FIIs in Indian
stock market (since 1993) crossed USD 50 billion at the end of March 2007. As on March 31, 2007,
the cumulative net investment by FIIs was USD 52 billion. The cumulative net investment by FIIs at
acquisition cost, which was USD 15.8 billion at the end of March 2003, had risen to USD 45.3 billion
at the end of March 2006. The FII in equity, which was high in the previous years, declined in 200607. During 2006-07, FIIs reduced their investment, in both equities as well as debt securities. The net
FII investment in equity during 2006-07 was Rs. 25,236 crore, at its lowest in past three years. This
was mainly due to large net sales in some months of 2006-07.
NET INVESTMENT BY FII
INVESTMENT TRENDS BY FII

As far as the investment trends of FII are considered we can see that the trend and the actual
investment go hand in hand except in 98-99 and 2003-2004.The net investment flows by FIIs were
negative during 1998-99 primarily because of the uncertainty that prevailed after India tested a series
of nuclear bombs in May 1998 and the imposition of economic sanctions by the US, Japan and other
industrialized countries but the FIIs portfolio flows quickly recovered and have become a positive net
investment from the subsequent years onwards.

9.2.1 REASONS FOR GROWTH IN FII INVESTMENTS

Global liquidity is, of course, the primary cause of the recent surge in Asian markets including
India. Also low interest rate regime has led foreign investors to look for fresh avenues to invest.
This has resulted in most emerging markets seeing heavy inflows.
FIIs see India as a good destination to invest in and make money. They are happy with the
Indian government's commitment to economic reforms. They are also looking closely at sectors
(and companies within these sectors) which they think
have potential. Infact, the growing competitiveness of Indian companies is an enticing
factor.
Long-Term Capital Gains Tax: which is the tax an investor pays when he sells his
shares after more than a year -- has been abolished; thus one can sell his shares without
having to pay the government any kind of tax.
Rupee Appreciation: The dollar has been falling in value vis--vis other currencies. As a
result, FIIs dont find the thought of investing in the US market all that attractive. They
know they will make more money if they invest elsewhere. Economic Growth: As
mentioned earlier we witnessed a GDP growth rate of about 8.5% last year. Our
industries like Telecom, Banking etc are doing relatively well. All these make our
country very attractive to invest in.
The sheer size of India and the relative stability the country offers are other obvious
plus points. Whatever the case may be, a perception is gaining momentum that foreign
investors are here to stay at least in the short-term.

10FOREIGN INSTITUTIONAL INVESTMENT: A COST BENEFIT ANALYSIS

The role of foreign investment over the years cant be ignored . It certainly has had an impact on the
Indian stock market with a lot of benefits but along with these benefits there are a few costs attached
with it. Therefore it is useful to summarize the benefits and costs for India of having foreign inflows.
BENIFITS
a) Reduced cost of equ ity
FII inflows augment the sources of funds in the Indian capital markets. FII investment reduces the

required rate of return for equity, enhances stock prices, and fosters investment by Indian firms in
the country. The impact of FIIs upon the cost of equity capital may be visualized by asking what
stock prices would be if there were no FIIs operating in India.
b) Stability in the balance of payment
For promoting growth in a developing country such as India, there is need to augment domestic
investment, over and beyond domestic saving, through capital flows. The excess of domestic
investment over domestic savings result in a current account deficit and this deficit is financed by
capital flows in the balance of payments. Prior to 1991, debt flows and official development
assistance dominated these capital flows. This mechanism of funding the current account deficit is
widely believed to have played a role in the emergence of balance of payments difficulties in 1981
and 1991. Portfolio flows in the equity markets, and FDI, as opposed to debt-creating flows, are
important as safer and more sustainable mechanisms for funding the current account deficit.

c) Knowledge flows
The activities of international institutional investors help strengthen Indian finance. FIIs advocate
modern ideas in market design, promote innovation, development of sophisticated products such
as financial derivatives, 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.

d) Strengthening corporate governance

Domestic institutional and individual investors, used as they are to the ongoing practices of Indian
corporate, often accept such practices, even when these do not measure up to the international
benchmarks of best practices. FIIs, with their vast experience with modern corporate governance
practices, are less tolerant of malpractice by corporate managers and owners (dominant
shareholder). FII participation in domestic capital markets often lead to vigorous advocacy of
sound corporate governance practices, improved efficiency and better shareholder value.
A significant presence of FIIs in India can improve market efficiency through two channels.
First, when adverse macroeconomic news, such as a bad monsoon, unsettles many domestic

investors, it may be easier for a globally diversified portfolio manager to be more

dispassionate about India's prospects, and engage in stabilizing trades. Second, at the level of
individual stocks and industries, 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. For
example, foreign investors were rapidly able to assess the potential of firms like Infosys,
which are primarily export-oriented, applying valuation principles that prevailed outside
India for software services companies.

COSTS a)
Hedging and positive
feedback training
There are concerns that foreign investors are chronically ill informed about india, and this
lack of sound information may generate herding (a large number of FIIs buying or selling
together) and positive feedback (buying after positive returns, selling after negative
returns).These Kinds of behavior can exacerbate volatility ,and push prices away from fair
values.

b)

Balance of payment
vulnerability
There are concerns that in an extreme event, there can be a massive flight of foreign capital
out of India, triggering difficulties in the balance of payments front. India's experience with
FIIs so far, however, suggests that across episodes like the Pokhran blasts, or the 2001 stock
market scandal, no capital flight has taken place. A billion or more of US dollars of portfolio
capital has never left India within the period of one month. When juxtaposed with India's
enormous current account and capital account flows, this suggests that there is little
vulnerability so far.

c)
Possibility of
takeovers
While FIIs are normally seen as pure portfolio investors, without interest in control, portfolio
investors can occasionally behave like FDI investors, and seek control of companies that they
have a substantial shareholding in. Such outcomes, however, may not be inconsistent with
India's quest for greater FDI. Furthermore, SEBI's takeover code is in place, and has functioned

fairly well, ensuring that all investors benefit equally in the event of a takeover.
11. DETERMINANTS OF FOREIGN INSTITUTIONAL INVESTMENT
After the initiation of economic reforms in the early 1990s, the movement of foreign capital flow
increased very substantially. There are a lot of factors that determine the nature and cause of
foreign institutional investment in a country a few of them being inflation exchange rate equity
returns, government policies, price earring ratio and risk. Now if we try to analyze the relation of
each of these factors with the level of foreign inflow in the country, we might have a better
understanding. let us broadly classify the factors into inflation, risk and stock market returns and
understand the basic principle behind the inflows.
a) Equity returns- An increase in the return in the foreign market will induce investors to
withdraw from the Indian (domestic) stock market to invest in the foreign market. Investors
are believed to follow a higher return, hence when the return in the domestic market increases,
FII flows to the domestic market. While the flows are highly correlated with equity returns in
India, they are more likely to be the effect than the cause of these returns. . It is assumed that
the equity returns have a positive impact on the FII inflow but foreign investors can also get
involved in profit booking. They can buy financial assets when the prices are declining,
thereby jacking-up the asset prices and sell when the asset prices are increasing and hence be
the cause of such returns so making it more of a bi-directional relationship.
b) Risk- Investors are considered to be risk averse, hence when risk in the domestic market
increases they will withdraw from the domestic market, when risk in the
foreign market increases, investors will withdraw from the foreign market and invest in the
Indian (domestic) market. Investments, either domestic or foreign, depend heavily on risk
factors. Hence, while studying the behavior of FII, it is important to consider the risk variable.
Risk can be divided into ex-ante and unexpected risk. While the exante risk certainly has an
inverse relation with the foreign investment nothing can be clearly said about the unexpected
risk.

c) Inflation- The inflation no doubt has an inverse relation with the foreign investment inflow as the

investor would keep in mind the purchasing power of the funds invested and as inflation increase
i.e. the purchasing power declines the investor is most likely to withdraw his money. When
inflation in the domestic country increases, the purchasing power of the funds invested declines,
hence investors will withdraw from the domestic market. Similarly, when inflation in the foreign
country increases, the purchasing power of funds invested in the foreign country declines, causing
institutional investors to withdraw from the foreign market and make investment in the domestic
(Indian) market.
d) Exchange rate -When the value of the home currency is stronger the FII investments will also
increase as the percentage of returns the FII get automatically increases and visa versa
So it can be said that the inflation and risk in the domestic country and return in the foreign country
adversely affect the FII flowing to the domestic country, whereas inflation and risk in the foreign
country and return in the domestic country have a favorable effect on the flow of FII.

12.

COMPARISON BETWEEN FIIS AND MUTUAL FUNDS INVESTMENTS

The comparison between the FII purchases and net investment with Mutual funds for the
period reveals some interesting information. As can be seen from the figure,
The amount of mutual fund investment in our country is very meager as compared to that of
FIIs. It means that Indian public is still not putting its bet on mutual funds and.
FIIs are much more aggressive in nature than mutual funds, who seem to have been very
constant in there approach to the Indian equity market.
Since May04, when the stock market crashed by 800 points in a day, the market has recovered
smartly and the FIIs have been able to cash on to the gains by buying Value
stocks during the lean periods, or buying on the dips. While the mutual funds have seems to

taken a different route altogether and have been net sellers for most of the period since
May04.
But after the year 2004 mutual Fund investment have also a tremendous increase. There
activity is the proof of the condition that has prevailed in the capital market recently that has
created a lot of faith among the retail investors also.
Also in the year 2007 has so far been the best year for mutual fund industry as it has shown a
tremendous growth in terms of net investment.This corroborates the fact that now Indian public
has started recognizing mutual fund as tool for investing in the capital market in india.
13. ROLE OF INSTITUTIONAL INVESTORS IN CAPITAL MARKET IN INDIA :
As the Indian capital market opened its gates for the foreign institutional investors . with time there
has been an increasing trends of there participating in the capital market. With there increasing
participation there has been a lot of effect on many parametes of the indiaN capital market. The
major effect of the increasing participation of the institutional investors has been observed in the
following areas.
Liquidity: Market liquidity is a business, econ omi cs or investment term that refers to an
asset's ability to be easily converted through an act of buying or selling without causing a
significant movement in the price and with minimum loss of value. An act of exchange of a
less liquid asset with a more liquid asset is called liquidation. Liquidity also refers both to that
quality of a business which enables it to meet its payment
obligations, in terms of possessing sufficient liquid assets; and to such assets themselves.
A liquid asset has some or more of the following features. It can be sold (1) rapidly, (2) with
minimal loss of value, (3) anytime within market hours. The essential characteristic of a liquid
market is that there are ready and willing buyers and sellers at all times. An elegant definition of
liquidity is also the probability that the next trade is executed at a price equal to the last one. A
market may be considered deeply liquid if there are ready and willing buyers and sellers in large
quantities. This is related to a market depth where sometimes orders cannot strongly influence
prices.The liquidity of a product can be
measured as how often it is bought and sold; this is known as volume. Often investments in liquid
markets such as the stock exchange or futures markets are considered to be more liquid than
investments such as real estate based on their ability to be converted quickly. Some assets with liquid

secondary markets may be more advantageous to own, are willing to pay a higher price for the asset
than for comparable assets without a liquid secondary market.

Price building mechanism: With the increasing participation of the institutional investors in the capital
market, it has also helped the different companies to raise funds for there use through the capital
market in india.earlier the companies use to go for debt financing which has a cost attachd to it and
also in those days the cost of issuing an IPO was higher as compared to the funds that were being
generated by the companies.With the help of FII the market has become more competitive. fair value
of their.
Role of speculation: Generally people transact for three reasons hedging speculating and arbitraging
Hedgers are those to intend to hedge their risk. Speculation may be defined as the purchase or sale of a
good with a view to resale or repurchase at a later date, where the motive behind such action is the
expectation of changes in the prices.
Speculation is one of the most watched activity in any capital market its importance varies in different
countries in countries like in US it forms an integral part of the market whereas in developing countries
like India its taken as a threat. It is often believe that speculators even out the price fluctuation by due
to change in demand and supply condition but the concerns about the adverse effects of speculation
come from two sources. First, the possibility that speculation, instead of evening out price fluctuations,
may end up exacerbating such fluctuations. Second, is the problem of speculation destabilizing rather
than stabilizing prices and hence affecting resource allocation. Through speculation, future expected
price not only depends on, but also has an impact on the spot price.
The market for shares is subject to much larger fluctuations than the market for bonds or even
commodities. Shares represent a share in the expected future profits of a company.
When fortunes of companies - both in the short run as well as in the medium to long run - fluctuate, so
do share prices. Uncertainty regarding the future leads to heavy discounting of future profits, and to
focus on short-period expectations about capital value rather than long- period prospects of the
company.

The effect of foreign speculative activity in emerging markets can be particularly beneficial if in the
emerging market, liquidity is poor First, the potential of market manipulation is acute in small
emerging markets and liquidity is often poor. Although there are many policy initiatives that could
increase liquidity and reduce the degree of collusion among large traders, there may not be a sufficient
mass of domestic speculators to ensure market liquidity and efficiency. Second, opening the market to
foreign speculators may increase the valuation of local companies, thereby reducing the cost of equity
capital.

Volatilty: Volatility most frequently refers to the standard deviation )f the change in value of a
financial instrument vith a specific time horizon. It is often used to quantify the risk )f the instrument
over that time period. Volatility is typically expressed in annualized terms, and it may either be an
absolute number ($5) or a fraction of the mean (5%). Volatility is often viewed as a negative in that it
represents uncertainty and risk. However, volatility can be good in that if one shorts on the peaks, and
buys on the lows one can make money, with greater money coming with greater volatility. The
possibility for money to be made via volatile markets is how short term market players like day traders
hope to make money, and is in contrast to the long term investm ent view of buy and hol d In today's
markets, it is also possible to trade volatility directly, through the use of derivative securities such as
options md vari ance swaps. 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. Given the presence of foreign institutional investors in Sensex companies and their active
trading behavior, small and periodic shifts in their behavior lead to market volatility. Such volatility is
an inevitable result of the
structure of Indias financial markets as well. Markets in developing countries like India are thin or
shallow in at least three senses. First, only stocks of a few companies are actively traded in the market.
Thus, although there are more than 8,000 companies listed on the stock exchange, the BSE Sensex
incorporates just 30 companies, trading in whose shares is seen as indicative of market activity.
Second, of these stocks there is only a small proportion that is routinely available for trading, with the
rest being held by promoters, the financial institutions and others interested in corporate control or
influence. And, third the number of players trading these stocks is also small.

In such a scenario investment by the foreign institutional investors leads to a sharp price increase this
provides incentives to FII investment and enhances investment and when the correction in the stock
prices begins it would have to be a pull out by the FII and can result in sharp decline in the prices. The
other reason for volatility is that the foreign institutional investors are attracted to a market by the
expectation of price increase that tend to be automatically realized, the inflow of foreign capital can
result in an appreciation of the rupee vis--vis the dollar This increases the return earned in foreign
exchange, when rupee assets are sold and the revenue converted into dollars. As a result, the
investments turn even more attractive triggering an investment spiral that would imply a sharper fall
when any correction begins. Apart from that the growing realization by the FIIs of the power they
wield in what are shallow markets, encourages speculative investment aimed at pushing the market up
and choosing an appropriate moment to exit. This manipulation of the market would certainly enhance
the volatility and in volatile markets even the domestic investors try to manipulate the market when the
prices are really high. Overall the foreign institutional investors have been bullish on the Indian stocks
but the problem is that this bullish nature might be a result of the activities outside the Indian market it
might be
due to the performance of their equity market or their non equity returns. Therefore they seek out
for best returns and diversified geographical portfolio in order to hedge their risk and when they
make some adjustments in their portfolio and make shifts in favor or against a country it borings
about sharp changes.

14. A STUDY OF MAJOR EPISODES OF VOLATILITY

14.1 Asian Major Episodes of Volatility

Excess volatility induced by the foreign investment is often taken as an argument
against liberalization with such incidences happening in the past.
Let us now try to find out whether the foreign investors in particular destabilize the
capital market beyond a level. The two most common examples of such
destabilization caused by the portfolio investment particularly the hedge funds are
the Asian crisis of 1997 and the ERM crisis of 1992.

I. ERM crisis The high-profile ERM crisis of 1992 came with speculators betting
that the member countries of the European Monetary System (EMS) were
converging to the European Monetary Union (EMU), and high-inflation
countries would have to realign their exchange rates, but the extent of
depreciation would be less than the interest rate differential between the highinflation and low-inflation countries. The expectation regarding the extent of
exchange rate adjustment led to
carry trade - borrowing from the low interest ERM countries and lending to
the high interest countries, or in the forward currency market, taking a long
position in the higher yielding currency and shorting the lower-yielding
currency. In spite of the material impact of hedge fund activities in the ERM
crisis, the role of the hedge funds in the crisis was limited. The practice of
extending lines of credit to offshore entities on a non-recourse basis against
collateral was not widely accepted by most

banks, and foreign exchange trading was primarily an inter-bank activity.

East Asian crisis After ten years (1986-97) of pegging of the Thai baht to the U.S. dollar, on
July 2, 1997, the peg had to be abandoned, and this created pressure
on other Asian currencies, and eventually brought down the Malaysian ringgit, the Indonesian
rupiah, the Philippine peso, and the Korean won. By end-1997, these currencies had lost between
44 and 56 percent of their value against the U.S. dollar, bankrupting many Asian corporations and
banks that had borrowed in foreign currencies, and leading to a
significant contraction of the economies. This episode is known as the East Asian crisis or Asian
crisis.Foreign investors were often blamed for the dramatic difficulties of the East Asian countries at
the times of the 1997 crisis. It was believed that the developing countries were more vulnerable to
vacillations in international flows than ever before A variety of reasons are adduced to explain why
foreign investors can have a destabilizing effect on capital markets in emerging economies. Foremost
among them are the pursuit of a positive feedback strategy that is buying when prices are rising and
selling when prices are falling, thereby exacerbating both the upswings and downswings. Positive
feedback leads to bubbles when prices depart from fundamentals and to crashes when bubbles burst.It
is also believed that the Asian financial crisis was the result of a panic created in the market Prime
Minister Mahathir Mohammed of Malaysia accused hedge funds of being the modern equivalent of
highwaymen in breaking the Asian currencies. Aggressive flow of the carry trade down the credit
spectrum in Asia during the 1990s from sovereign credit, to top -tier domestic commercial banks,
to lower-tier commercial banks and finance companies, and finally to firms. The excessive build-up of
foreign debt, they attribute to the confidence of domestic companies and banks in the fixed official
exchange rate. FII investment in equities had little role to play in the crisis. Fung, Hsieh, and
Stsatsaronis (2000) report At the height of the episode, some Asian government officials accused
speculators and hedge funds of attacking the currencies and causing their downfall. A public debate
ensued, and the International Monetary Fund (IMF) responded by
examining the role of hedge funds in the Asian currency crisis. The resulting study by
Eichengreen, Mathieson, Chadha, Jansen, Kodres, and
During the stock market scam which shook the capital market in india the FII were
also one of the major factors which exacerbates the fall in the sensex.During the
Black Monday episode the FII were also on a heavy selling spree which ultimately
34

lead to some major fall in the sensex value.

FII investment behavior during these four specific events indicates that these events did
affect the behavior of the foreign portfolio investors. But, these events did affect domestic
investors behavior as well.
These experiences show that FII outflow of as much as a billion dollars in a month - which
corresponds to an average of $40 million or Rs.170 crore per day - has never been observed. These
values - Rs.170 crore per day - are small when compared with equity turnover in India. In calendar
2004, gross turnover on the equity market of Rs.88 lakh crore contained Rs.5 lakh crore of gross
turnover by FIIs. This suggests that as yet, FIIs are a small part of the Indian equity market.
Transactions by FIIs of Rs.5 lakh crore in a year might have been large in 1993, but the success of a
radical new market design in the Indian equity market have led to enormous growth of liquidity and
market efficiency on the equity market. Through this, Indias ability to absorb substantial
transactions on the equity market appears to be in place.

The net FII inflows into India have been less volatile compared to other emerging markets this
stability could be attributed to several factors: Strong economic fundamentals and attractive
valuation of companies. Improved regulatory standards, high quality of disclosure and corporate
governance requirement, accounting standards, shortening of settlement cycles, efficiency of
clearing and settlement systems and risk management mechanisms. Product diversification and
introduction of derivatives. Strengthening of the rupee dollar exchange rate and low interest rates in
the US.
I. Post 2004 Major Volatile Episodes:

35

As from the above graph it is clear that in the month of jan 2008 the BSE sensex was already
moving down due to the weak global cues and US recession and similarly the FII investment fell
drastically during that period running panick among the investors
and further exacerbating the fall. But in the case of mutual fund investment went up during the
time shows that the the domestic institutional investors cash on the fall of sensex because of the
strong fundamentals of the Indian capital market.
By looking at the above graph we can very well say that this time around the fall of BSE sensex
was majorly due to the FII which went on a selling spree which lead to the fall of the market
during this Crash.FII acted in this fashion because of the weak global cues i.e at that point of time
other emerging markets were also down .
The fall of 769 points by sensex on Dec 17,2007 was attributed to the fact mainly due to the
subprime losses and also was exacerbated due to the withdrawl of investments by the FII. As the
subprimelosses mainly hit the US economy and the majority of FII participating in the Indian capital
market are from US .To cover there losses in US they started selling in india which lead to the fall of
sensex on that particular day and subsequent days.

During the month of Ostober 2007 indian govt took some strict measure to control the usage of the
Participatory notes. The restrictions proposed by SEBI in regulating participatory notes in a sudden
announcement wrought havoc in the operations of the share market causing a fall of over 1,700
points in the Sensex on Wednesday. SEBI
should have used some pragmatic caution by avoiding the announcement and introducing
regulatory steps in a phased manner. The share market is extremely vulnerable to the
sentiments created by the utterances of those in regulatory authority.
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 .This is clearly vivble from the
above graph that this time around the FII were the main cause of the crash of the
sensex on
36

18th oct . But also there comes an interesting fact that there was also a heavy
selling on 22nd October but this time the FII Withdrawl effect was offset by
the Huge investment made by domestic institutional investor specially
LIC,which saved the market from a heavy meltdown.
The reasons being given for the crash are the sale of Rs 7300 crore (Rs 73
Billion)sharwes by FIIs in the past 1 week, an expected increase in interest rates by
the US Feds, a crash in the international commodity prices, and the straw which broke
its back seems to be a government circular which was interpreted that FIIs should be
taxed. P Chidambaram, the countrys Finance Minister, issued an evening press release
ienying the latter.

15. STATISTICAL ANALYSIS

For the purpose of statistical analysis I have considered 7 yrs data of FII Net Investments,
Mutual Funds Net Invesments ,NSE S&P CNX Nifty and BSE Sensex Indices. Statistical
Analysis is carried out to find the degree of association between the Net investments by the
institutional investors with the capital market i.e (Sensex & Nifty indices). Since 7 years data is a
very comprehensive data and the internal and the extraneous factors have been changing
over the time which does have impact on the Indian capital market. So in order to have appropriate
data I calculated the volatility of BSE Sensex for each year and then divided them into 3 periods i.e
2001-2003,2004-2005,2006-Feb 2008. Then I have applied regression analysis to find out the degree
of association among the FII Net Investments ,the Sensex and Mutual Fund Investments , the Sensex
. Similarly the degree of association is been calculated for Nifty index with FII and Mutual funds net
investments.
To calculate the volatility of the BSE Index and to find out the degree of association ,the formula
37

and the methodology is given below.

I.

Volatility
Volatility is a measure of the range of an asset price about its mean level over a fixed amount of
time. It follows that volatility is linked to the variance of an asset price. If a stock is labeled as
volatile then the price will varies greatly over time. Conversely, a less volatile stock will have a
price that will deviate relatively little over time. Since volatility is associated with risk, the more
volatile that a stock is, the more risky it is. Consequently, the more risky a stock is, the harder it
is to say with any certainty what the future price of the stock will be.
Computing the Volatility
The estimation of volatility comes from a mathematical model of stock prices. The mathematical
model we will use is based on three assumptions about stock prices and their movements. The
first assumption that we will be using is that volatility is constant. The next assumption is that
stock prices cannot be negative; once a stock price reaches $0 it cannot go any lower. The third
assumption is that the price of a stock is a normal random variable.
Thus volatility is calculated as standard deviation as it is the standard measurement device used
worldwide to calculate the volatility.
Standard deviation is a statistical term that provides a good indication of volatility. It measures
how widely values (closing prices for instance) are dispersed from the average.
Dispersion is difference between the actual value (closing price) and the average value (mean
closing price). The larger the difference between the closing prices and the average price, the
higher the standard deviation will be and the higher the volatility. The closer the closing prices
are to the average price, the lower the standard deviation and the lower the volatility.
Standard Deviation = V(XrX)2

n
Where
n - Number of observations,

II.

X bar - mean of
observations, Xi - ith
observation.
Regression Analysis:
Regression Analysis is another statistical tool for measuring the association between two
38

variables. It is a technique used to predict the nature and closeness of relationships between two
or more variables. This analysis helps the researchers to evaluate the causal effect of one variable
on another variable. It is used to predict the variability in the dependent variable based on the
information of one or more independent variable.Regression analysis that involves two variable is
termed as bivariate linear regression analysis. It is expressed as following equation.
Y=a+b*X
Where
Y is the dependent variable (Sensex and Nifty Indices )
X is the independent variable (FII Investments and Mutual Funds Investments). a & b
are two constants which are known as regression coefficients.
b is the slope coefficient i.e the value of b is the change in value of Y with corresponding change
in one unit of X.
The constant b can be calculated using following formula:
b = n(XY)- XY nl(X)2 (I-X)2

a represents Y intercepts when X=0. a

=Y-bX
where Y=the mean of values of dependent variable.
X=the mean of values of independent variable.
We now develop the estimated regression equation
Y= a+bX
Y represents the estimated value of dependent variable for a given value of X.

Strength of Association - R2
39

The above developed estimated regression equation can only explain the nature of
relationshipbetween two variables.However, if the researcher wants to know how strong or
weak the relationship is i.e to what degree that the variation in Y can be explained by X.the
coefficient of determination denoted by R 2 is used. R2 which is measured in percentage will
explain how much of the total variation in Y is explained by X variable.
R2 = explained Variance / Total Variance
Total Variance=Explained Variance - Unexplained Variance
R2 = (Total Variance- Unexplained Variance) / Total Variance. Unexplained Variance =
(Y- Y)2 Total variance= (Yr Y)2 Tables below give the results of the regression analysis
done on the data above mentioned.
The above table which shows the result of the regression analysis done with ssensex as the
dependent variable and FII as the independent variable. Volatility is calculated for sensex and the
table shows that the sensex volatility has been increasing over the years.The value of R 2 implies
that the in the year 2001 - 2003 , the total variation of sensex nearly 27% is explained by the
variation of FII investments.Over the years it has been following a decreasing trend which is good
for the Indian capital market as this shows that FII is not the only criteria on which the volatility of
sensex is dependent.
The above table shows the analysis ran between the sensex and the mutual funds in
india.As we know mutual funds in india are at a nascent stage . the result of R 2 tells us that
the dependency of sensex variation on the mutual fund investment has been increasing over the

49

40

years.
The Above graph shows us the volatility of Nifty over the period of seven years and the results tell us
that the volatility has been increased over the years. The Value of R 2 also tells us that the total variation
of nifty index, nearly 26% is explained by the variation in FII net investment in the year 2001-2003 and
has been decreasing over the years.

Interpretation of the Analysis.

Now looking at the result table above it is clearly visible that volatility has increased tremendously
during the years.Volatility has increased six times in the case of Sensex and for nifty it has increased
nine times as compared to what it was there in the years 20012003. Also the value of the constant a in
the regression equation is following an increasing trend which tells the effect on the dependent variable
when the independent variable is zero. Similarly the constant bwhich tells the magnitudinal change
with one unit change in the independent variable is also following a decreasing trend in the case of FII
investments but in the case of mutual funds it is showing an increasing trend which tells us that domestic
institutional investors are also restoring faith in the market and
subsequently they have increased there participation in the capital market. The degree of
association i.e R square tells us an important fact that slowly and steadily the degree of association
of FII investments with the Sensex is decreasing .It tells us the fact that in the year 2001-2003
around 27% of the total variance shown by sensex could be explained by FII investments in both
the leading stock exchanges in india.Also in the subsequent years the value or R square is
decreasing in case of FII investments leading to the fact that the volatility effect of FII on the
capital market is on the decreasing trend,which is beneficial for the Indian stock market.Also the
increasing value of R square in case of mutual funds is also a positive sign for the Indian stock
market as it tells us that the domestic investors over the years has shown increased participation and
helped the market to stablise inspite of such high volatility .

Recommendations
After analyzing the nature and behavior of the foreign institutional investment in the past and its
influence on the Indian stock market it would be safe enough to say that foreign funds are one of the
most volatile instruments floating in the market and needs to be handled cautiously.
Government should certainly encourage foreign institutional investment but should keep a check on the
volatility factor. Long term funds should be given priority and encouraged some of the actions that
51

could be taken to ensure stability are

Strengthening domestic institutional investors The participation of domestic pension funds in the
equity market would augment the diversity of views on the market and hence the domestic pension
funds must be encouraged .
Broad basing of eligible entities

In order to address the market integrity concerns arising out of allowing some entities, which do not
have reputational risk or are unregulated, there is merit in prohibiting such entities from getting
registered.
Operational flexibility to impart stability to the market The stability of foreign investment in India
will be enhanced if FIIs are able to switch between equity and debt investments in India, depending on
their view about future equity returns. SEBI can make such policies.
Knowledge activities and research programs There must be a lot of research programs and studies
conducted by the economic affairs regulators in India

Conclusion
After analyzing the nature of FII in the past it would be safe enough to say that the foreign funds is
certainly one of the most important cause of volatility in the Indian stock market and has had a
considerable influence on it. Although it would not be fair enough to come to any conclusion as there
are a lot of other factors beyond the scope of the study that effect returns and risks .it is not easy to
predict the nature of the macroeconomic factors and their behavior but it has a great significance on any
economy and its elements. Although generally a positive relation has been seen between the stock
market returns and the FII inflows it is not easy to say which is the cause n which is the effect and
strange behavior has also been noticed in the past.

Foreign investment certainly are influencing the Indian stock market but the extent of this influence
52

cannot be determined or rather the extent of Indias dependence on the FIIs is a subjective issue as on no
clear grounds can we see a permanent relationship between the stock market returns and the Foreign
inflows. But to generalize they have shown a positive relation most of the time apart from a few
occasions where the behavior of their relation was difficult to explain.
REFERENCES:

WEPSITE:
www.nseindia.com
www.fi nmin.ni c.in
www.bseindia.com
www.investopedia.com
www.indiainfoline.com
www.amfiindia.com
www.livemi nt.c om
www.sebi.gov.in
www.capitaline.com
ANEXURE:

53

Table 1: Data of Sensex,Nifty,FII and Mutual Fund Net Investment

Date

3-Jan-05
4-Jan-05
5-Jan-05
6-Jan-05
7-Jan-05
10-Jan-05
11-Jan-05
12-Jan-05
13-Jan-05
14-Jan-05
17-Jan-05
18-Jan-05
19-Jan-05
20-Jan-05
24-Jan-05
25-Jan-05
27-Jan-05
28-Jan-05
31-Jan-05
1-Feb-05
2-Feb-05
3-Feb-05
4-Feb-05
7-Feb-05
8-Feb-05
9-Feb-05
10-Feb-05
11-Feb-05
14-Feb-05
15-Feb-05
16-Feb-05
17-Feb-05
18-Feb-05
21-Feb-05
22-Feb-05
23-Feb-05
24-Feb-05
25-Feb-05
28-Feb-05

Sensex

6679.2
6651.01
6458.84
6367.39
6420.46
6308.54
6222.87
6102.74
6221.06
6173.82
6194.07
6192.35
6173.32
6183.24
6106.43
6162.98
6239.43
6419.09
6555.94
6552.47
6530.06
6619.97
6618.23
6535.17
6544.77
6593.53
6577.83
6633.76
6679.33
6670.06
6607.78
6589.29
6584.32
6534.68
6589.41
6582.5
6574.21
6569.72
6713.86

FII in Crore Mutual

Funds
in
Crore
106.7
23.1
345.9
7.8
200.6
107.7
-57.9
19.9
-31.8
73.2
-68.3
44.4
-32
60.3
-86.5
72
-185.8
51.8
-0.8
131.1
116
5.9
15.8
-9.3
-164.6
-67.4
-77.3
24.1
-13.3
-29.8
-158.6
-16.3
-281.8
92.8
198.8
62.3
632
-24.6
895.3
-1
820.4
-49.2
1374
-113
489.3
44
249.6
-16.2
105.3
17.6
220.1
-85.5
128.4
29.7
176.6
52.3
249.5
49.7
834.2
61.6
604.1
45.2
473
-132
233.3
22.2
252
-97.3
210.8
-49.4
257
-58.4
297.8
-73
41.5
82.3
464.1
239.7

Nifty

2059.8
2080.5
2115
2103.75
2032.2
1998.35
2015.5
1982
1952.05
1913.6
1954.55
1931.1
1932.9
1934.05
1926.65
1925.3
1909
1931.85
1955
2008.3
2057.6
2059.85
2052.25
2079.45
2077.95
2055.1
2055.15
2070
2063.35
2082.05
2098.25
2089.95
2068.8
2061.9
2055.55
2043.2
2058.4
2057.1
2055.3

54

1-Mar-05

6651.08

342.8

105

2060.9

2-Mar-05
3-Mar-05
4-Mar-05
7-Mar-05
8-Mar-05
9-Mar-05
10-Mar-05
11-Mar-05
14-Mar-05
15-Mar-05
16-Mar-05
17-Mar-05
18-Mar-05
21-Mar-05
22-Mar-05
23-Mar-05
24-Mar-05
28-Mar-05
29-Mar-05
30-Mar-05
31-Mar-05
1-Apr-05
4-Apr-05
5-Apr-05
6-Apr-05
7-Apr-05
8-Apr-05
11-Apr-05
12-Apr-05
13-Apr-05
15-Apr-05
18-Apr-05
19-Apr-05
20-Apr-05
21-Apr-05
22-Apr-05
25-Apr-05
26-Apr-05
27-Apr-05
28-Apr-05
29-Apr-05
2-May-05
3-May-05
4-May-05
5-May-05
6-May-05
9-May-05

6686.89
6784.72
6849.48
6878.98
6915.09
6892.82
6907.65
6853.73
6810.04
6752.45
6746.88
6669.52
6700.34
6656.69
6535.45
6454.46
6442.87
6510.74
6367.86
6381.4
6492.82
6605.04
6604.42
6550.29
6606.41
6545.64
6479.54
6397.52
6464.61
6467.92
6248.34
6156.78
6134.86
6243.74
6299.2
6346.57
6377.85
6339.98
6278.5
6284.2
6154.44
6195.15
6216.77
6289.55
6359.65
6388.48
6481.35

538.2
698.5
367.6
554.3
461.8
498.3
793.2
1310
130.7
2897.5
-46.1
-198.8
64.2
136
43.8
-42.5
-131.2
263.2
535.3
-1724
9.4
358.6
27.9
244
103.4
95.1
59.9
-54.3
70.5
-108.7
176.4
-574.4
-456.7
-124.1
-231.2
-22.8
284
12.9
-55.5
-133.9
-325.2
-34.3
-16
30.2
-67.6
123.3
127.3

-22.8
-172.3
46.4
175.8
216.1
142.4
-21.1
24.8
-38.6
49.9
-71.6
38.7
160.6
51.1
47.8
142.3
91.3
153.3
225.2
-70.8
183.3
95
77
104.5
16.8
41.9
-8
69.5
65.4
-2.5
57.3
49.9
27.1
225.1
138.6
-17.3
162.8
176.2
54.4
79.8
132
50
41.5
53.1
109.7
64.4
140

2103.25
2084.4
2093.25
2128.85
2148.15
2160.1
2168.95
2160.8
2167.4
2154
2146.35
2128.95
2125.55
2098.5
2109.15
2096.6
2061.6
2026.4
2015.4
2029.45
1983.85
1993.7
2035.65
2067.65
2063.4
2052.55
2069.3
2052.85
2031.2
2008.2
2024.95
2025.45
1956.3
1927.8
1909.4
1929.7
1948.55
1967.35
1970.95
1957.1
1935.4
1941.3
1902.5
1916.75
1920.7
1942.6
1963.3

55

10-May-05

6454.71

39

110.2

1977.5

11-May-05
12-May-05
13-May-05
16-May-05
17-May-05
18-May-05
19-May-05
20-May-05
23-May-05
24-May-05
25-May-05
26-May-05
27-May-05
30-May-05
31-May-05
1-Jun-05
2-Jun-05
3-Jun-05
4-Jun-05
6-Jun-05
7-Jun-05
8-Jun-05
9-Jun-05
10-Jun-05
13-Jun-05
14-Jun-05
15-Jun-05
16-Jun-05
17-Jun-05
20-Jun-05
21-Jun-05
22-Jun-05
23-Jun-05
24-Jun-05
27-Jun-05
28-Jun-05
29-Jun-05
30-Jun-05
1-Jul-05
4-Jul-05
5-Jul-05
6-Jul-05
7-Jul-05
8-Jul-05
11-Jul-05
12-Jul-05
13-Jul-05

6445.13
6456.82
6451.54
6528.03
6466
6447
6478.94
6499.5
6539.83
6565.37
6597.6
6670.78
6707.72
6663.55
6715.11
6729.9
6655.56
6748.85
6753
6758.19
6781.25
6858.24
6832.53
6781.99
6832.68
6860.18
6906.98
6900.41
6906.52
6984.55
7076.52
7145.34
7119.76
7148.62
7151.08
7049
7119.88
7193.85
7210.77
7277.31
7220.25
7287.6
7145.13
7212.08
7306.74
7303.95
7247.91

-98.7
-173.2
-44.5
190.7
-188.3
-74
-438.5
63.5
-22.9
64
-162.5
-10.9
-185.1
-446.9
185.3
298.5
205.2
125.5
302.5
32.7
87.7
76.4
292.8
293.5
261.9
-2131.3
185.3
392.8
418.3
229.5
460.8
298.9
1467.6
485.3
354.2
275.5
521.9
393.1
732.1
314.5
196
380.3
387.8
405.9
322.3
462.6
376.9

213.4
187
99.2
167.4
286.4
374.5
180.9
446.3
123.6
77.7
70.2
366.9
293.2
123.8
68.8
-136.3
-75.4
20.3
-111.3
-102.5
0.9
-2
23.6
46.4
-36.9
-30.1
4.7
21.5
-13.9
-86.3
-166.8
-228.1
-68.2
-306.3
-317.3
-32.9
-88.4
-211.9
-73.9
-57.6
-187.8
0.2
-62.9
-37.7
-103.3
-92.8
-111.1

2000.75
1994.3
1985.95
1993.15
1988.3
2012.6
1990.8
1982.75
1990.85
1992.4
2013.9
2028.6
2043.85
2074.7
2076.4
2072.4
2087.55
2087.55
2064.65
2094.25
2092.35
2092.8
2098.15
2112.4
2103.2
2090.6
2102.75
2112.35
2128.65
2123.7
2123.4
2144.35
2170
2187.35
2183.85
2194.35
2199.8
2169.85
2191.65
2220.6
2211.9
2230.65
2210.75
2228.2
2179.4
2196.2
2218.85

56

57

14-Jul-05

7187.7

253

-125.9

2220.8

15-Jul-05
18-Jul-05
19-Jul-05
20-Jul-05
21-Jul-05
22-Jul-05
25-Jul-05
26-Jul-05
27-Jul-05
29-Jul-05
1-Aug-05
2-Aug-05
3-Aug-05
4-Aug-05
5-Aug-05
8-Aug-05
9-Aug-05
10-Aug-05
11-Aug-05
12-Aug-05
16-Aug-05
17-Aug-05
18-Aug-05
19-Aug-05
22-Aug-05
23-Aug-05
24-Aug-05
25-Aug-05
26-Aug-05
29-Aug-05
30-Aug-05
1-Sep-05
2-Sep-05
5-Sep-05
6-Sep-05
8-Sep-05
9-Sep-05
12-Sep-05
13-Sep-05
14-Sep-05
15-Sep-05
16-Sep-05
19-Sep-05
20-Sep-05
21-Sep-05
22-Sep-05
23-Sep-05

7271.54
7347.1
7346.63
7342.89
7304.32
7423.25
7505.6
7552.77
7605.03
7635.42
7669.45
7756.04
7756.47
7797.08
7754
7606.17
7595.57
7729.82
7816.51
7767.49
7768.24
7859.53
7811.33
7780.76
7750.6
7615.99
7612
7660.42
7680.22
7634.43
7745
7876.15
7899.77
7925.24
7946.78
8052.56
8060.01
8138.42
8193.96
8189.48
8283.76
8380.96
8444.84
8500.28
8487.14
8221.64
8222.59

176.6
204.6
369.4
388.1
317.7
299.1
1040.6
621.5
490.9
194.2
1010.2
642.7
563.8
279.8
241
807.2
419.9
118.7
-101.3
-0.2
274.9
17.6
156.3
47.1
-77.1
9.4
60.6
-110.5
306.8
117
9.2
371.4
313.1
234
247.9
70.7
543.3
-50
167.6
418.2
158.7
407.2
443.7
101.1
321.9
307.6
514.4

-138.8
40.5
106.6
10.1
63.4
70.8
35.9
148
143.7
180.6
108.4
343.8
-134.4
116.1
204.4
94.7
68.1
-86.8
-93.4
189.1
235.6
505.6
132
43.1
110.1
-33
70.7
95.9
170.8
157
45.5
47.1
197.2
177.8
192.3
88.8
-45.5
183.3
284.6
315.9
270.3
132.2
39.6
164.4
121.2
74.9
90.9

2204.05
2185.1
2212.55
2234
2237.3
2241.9
2230.5
2265.6
2291.75
2303.15
2319.1
2312.3
2318.05
2353.65
2357
2367.8
2361.2
2324.4
2318.7
2360.15
2380.9
2361.55
2369.8
2403.15
2388.45
2383.45
2367.85
2326.1
2322.5
2354.55
2357.05
2337.65
2367.75
2405.75
2415.8
2422.95
2428.65
2454.45
2455.45
2484.15
2500.35
2492.45
2523.95
2552.35
2567.1
2578
2567.3

26-Sep-05

8478.91

-325.5

27-Sep-05
28-Sep-05
29-Sep-05
30-Sep-05
3-Oct-05
4-Oct-05
5-Oct-05
6-Oct-05
7-Oct-05
10-Oct-05
11-Oct-05
13-Oct-05
14-Oct-05
17-Oct-05
18-Oct-05
19-Oct-05
20-Oct-05
21-Oct-05
24-Oct-05
25-Oct-05
26-Oct-05
27-Oct-05
28-Oct-05
1-Nov-05
2-Nov-05
7-Nov-05
8-Nov-05
9-Nov-05
10-Nov-05
11-Nov-05
14-Nov-05
16-Nov-05
17-Nov-05
18-Nov-05
21-Nov-05
22-Nov-05
23-Nov-05
24-Nov-05
25-Nov-05
26-Nov-05
28-Nov-05
29-Nov-05
1-Dec-05
2-Dec-05
5-Dec-05
6-Dec-05
7-Dec-05

8525.52
8606.03
8650.17
8634.48
8697.65
8799.96
8724.47
8528.7
8491.56
8483.86
8540.56
8376.9
8201.73
8202.62
8122.25
7971.06
7935.12
8068.95
7920.8
7991.74
7974.69
7798.49
7685.64
7944.1
8072.75
8206.83
8317.8
8308.78
8308.93
8471.04
8494.29
8595.92
8649.52
8686.65
8610.74
8534.97
8638.34
8744.04
8853.21
8889.03
8994.94
8931.16
8944.78
8961.61
8823.31
8815.53
8895.81

199.3
26.3
42.5
133.4
-36.9
-118.4
421.6
54.1
-568.5
-291.9
74.4
-135.5
-399.6
293.1
-299.1
-223.8
-196.7
-71.1
-404.4
-132.1
-232.7
-453.6
-755.1
-148.6
50.6
384.5
530.8
609.2
99.1
-137
29.2
34
145.3
90.8
286.3
423.7
167.6
311.9
461.4
247.9
39.4
158.7
261.5
425.1
514.7
-46.8
72.8

59

1.5

2476.5

86.1
133.3
231.4
200.2
454.4
27
156.3
-42
-149.5
71.3
210.7
-66.9
177.7
23.2
-80.7
237.4
312.7
596.8
25.7
276.7
189.8
285.5
92
223.8
202.6
2.8
-124.3
-28
-38.1
-83.3
207.1
69.6
107.5
114.3
117
-96.7
35.4
0.4
103.7
65.2
17.9
176.6
-33.1
-333.4
-52.2
-183.1
183.5

2477.75
2557.35
2574.85
2598.05
2611.2
2601.4
2630.05
2663.35
2644.4
2579.15
2574.05
2566.85
2589.55
2537.3
2484.4
2485.15
2468.2
2412.45
2395.45
2443.75
2394.85
2418.2
2408.5
2352.9
2316.05
2386.75
2419.05
2461.6
2492.65
2489.1
2500.7
2548.65
2558.7
2582.75
2603.95
2620.05
2602.5
2572.85
2608.6
2635
2664.3
2683.45
2712
2698.3
2698.95
2697.95
2660.5

58

8-Dec-05

8906.31

9-Dec-05
12-Dec-05
13-Dec-05
14-Dec-05
15-Dec-05
16-Dec-05
19-Dec-05
20-Dec-05
21-Dec-05
22-Dec-05
23-Dec-05
26-Dec-05
27-Dec-05
28-Dec-05
29-Dec-05
30-Dec-05
2-Jan-06
3-Jan-06
4-Jan-06
5-Jan-06
6-Jan-06
9-Jan-06
10-Jan-06
12-Jan-06
13-Jan-06
16-Jan-06
17-Jan-06
18-Jan-06
19-Jan-06
20-Jan-06
23-Jan-06
24-Jan-06
25-Jan-06
27-Jan-06
30-Jan-06
31-Jan-06
1-Feb-06
2-Feb-06
3-Feb-06
6-Feb-06
7-Feb-06
8-Feb-06
10-Feb-06
13-Feb-06
14-Feb-06
15-Feb-06
16-Feb-06

9067.28
9133.67
9263.9
9241.76
9170.4
9284.46
9394.27
9346.24
9339.17
9372.3
9256.91
9085.89
9283.16
9257.51
9323.25
9397.93
9390.14
9539.37
9648.08
9617.74
9640.29
9583.45
9445.3
9380.88
9374.19
9311.19
9314.13
9237.53
9449.84
9520.96
9464.9
9549.92
9685.74
9870.79
9849.03
9919.89
9859.26
9843.87
9742.58
9980.42
10082.28
10044.82
10110.97
10173.25
10086.63
10113.18
10124.3

61

-68.5

124.7

2662.3

-41
420.1
281.2
1163.9
432.6
542.1
2685.5
1125.1
322
384.7
260.6
241.6
56
21.6
144.9
135.3
526.9
477.7
466.6
912
86.9
344.5
397
-2.2
-1028.9
7.6
-32.4
320.3
2.3
81.4
55
-318.2
42.1
820
719.1
-200.1
217.4
508.1
364.1
626.5
796.5
935.6
-118.3
614.4
335.5
-501.6
-57.7

241.9
48.8
-128.8
-134.3
-295.5
-145.3
-420.1
-5.3
-155.9
-82.9
-95.9
7.7
-19.7
126.9
29.9
189.1
-222.6
-73.2
-106.5
58.8
-14.6
-310.2
-153.8
321.1
-28.9
-216.4
-301.8
-262.5
47.6
4.3
-52.1
-58.3
-230.8
326.9
94.1
6.7
-25.4
-51.3
44.7
-330
139.6
0.2
-106.4
-43
45.8
59.6
46.9

2693
2706.7
2756.45
2776.2
2812.3
2804.55
2778.55
2810.15
2842.6
2826.2
2822.9
2835.25
2804.85
2749.6
2805.9
2798
2835.95
2883.35
2904.4
2899.85
2914
2910.1
2870.8
2850.7
2850.55
2833.1
2829.1
2809.2
2870.85
2900.95
2884.05
2908
2940.35
2982.75
2974.5
3001.1
2971.55
2967.45
2940.6
3000.45
3020.1
3008.95
3027.55
3041.15
3017.55
3022.2
3021.6

17-Feb-06

9981.11

247.1

20-Feb-06
21-Feb-06
22-Feb-06
23-Feb-06
24-Feb-06
27-Feb-06
28-Feb-06
1-Mar-06
2-Mar-06
3-Mar-06
6-Mar-06
7-Mar-06
8-Mar-06
9-Mar-06
10-Mar-06
13-Mar-06
14-Mar-06
16-Mar-06
17-Mar-06
20-Mar-06
21-Mar-06
22-Mar-06
23-Mar-06
24-Mar-06
27-Mar-06
28-Mar-06
29-Mar-06
30-Mar-06
31-Mar-06
3-Apr-06
4-Apr-06
5-Apr-06
7-Apr-06
10-Apr-06
12-Apr-06
13-Apr-06
17-Apr-06
18-Apr-06
19-Apr-06
20-Apr-06
21-Apr-06
24-Apr-06
25-Apr-06
26-Apr-06
27-Apr-06
28-Apr-06
29-Apr-06

10079.3
10168.11
10224.32
10244.05
10200.76
10282.09
10370.24
10565.47
10626.78
10595.43
10735.36
10725.67
10508.85
10573.54
10765.16
10803.71
10801.72
10878.74
10860.04
10941.11
10905.2
10841.35
10840.59
10950.3
11079.02
11086.03
11183.48
11307.04
11279.96
11564.36
11638.01
11746.9
11589.44
11662.55
11355.73
11237.23
11539.68
11821.57
11895.98
12039.55
12030.3
11915.24
11646.78
11938.53
11835.02
11851.93
12042.56

344.4
586.1
125.3
417.4
761.4
1001.8
383.8
201.8
576
645.7
389.8
247.1
222.5
832.3
-287
624.8
229.5
164.6
24.2
474.9
148.2
181.7
300.6
56.3
137.5
550.2
371.7
93.9
502.5
45.2
477.9
132.4
314
-427.1
-421.7
-734.8
-960.5
252.9
-273.9
-201.1
224.9
151.5
194.8
-508.8
-206.2
2513.8
-51.4

63

69.9

2981.5

-157.6
-18.8
22.8
-70
-149.5
59.7
217.3
204.1
135.5
-25.2
229.5
-64.4
483.6
217.8
413.2
289.9
40.4
138
460.5
101.9
209.3
63.8
56
-51.7
517.7
317.8
52.3
256.7
439.6
211.7
1.8
117.7
284.8
-197.1
185.5
521.5
202.7
112.5
68.6
159.3
25.6
77.3
217.4
327.7
521.4
194.2
82.3

3005.85
3035.5
3050.8
3062.1
3050.05
3067.45
3074.7
3123.1
3150.7
3147.35
3190.4
3182.8
3116.7
3129.1
3183.9
3202.65
3195.35
3226.6
3234.05
3265.65
3262.3
3240.15
3247.15
3279.8
3321.65
3325
3354.2
3418.95
3402.55
3473.3
3483.15
3510.9
3454.8
3478.45
3380
3345.5
3425.15
3518.1
3535.85
3573.5
3573.05
3548.9
3462.65
3555.75
3508.1
3508.35
3557.6

60

2-May-06

12218.78

60.9

3-May-06
4-May-06
5-May-06
8-May-06
9-May-06
10-May-06
11-May-06
12-May-06
15-May-06
16-May-06
17-May-06
18-May-06
19-May-06
22-May-06
23-May-06
24-May-06
25-May-06
26-May-06
29-May-06
30-May-06
31-May-06
1-Jun-06
2-Jun-06
5-Jun-06
6-Jun-06
7-Jun-06
8-Jun-06
9-Jun-06
12-Jun-06
13-Jun-06
14-Jun-06
15-Jun-06
16-Jun-06
19-Jun-06
20-Jun-06
21-Jun-06
22-Jun-06
23-Jun-06
25-Jun-06
26-Jun-06
27-Jun-06
28-Jun-06
29-Jun-06
30-Jun-06
3-Jul-06
4-Jul-06
5-Jul-06

12310.72
12347.63
12359.7
12462.47
12513.86
12612.38
12435.41
12285.11
11822.2
11873.73
12217.81
11391.43
10938.61
10481.77
10822.78
10573.15
10666.32
10809.35
10853.14
10786.63
10398.61
10071.42
10451.33
10213.48
9957.32
9756.76
9295.81
9810.46
9476.15
9062.65
8929.44
9545.06
9884.51
9997.84
9822.52
10040.14
10275.88
10401.3
10412.93
10042.06
10151.01
10129.7
10162.16
10609.25
10695.26
10662.22
10919.64

218.5
907.2
322.6
1108.1
366.5
460.5
322.9
-1199.1
18.6
-728.4
-533.4
-423.5
-810.6
-1361.3
-929.8
-1243.2
-1935
-1632.8
-252.7
-81.8
-8.4
-832.3
-282.2
640.4
571
84.8
31.9
111.2
508.9
97.9
-81.8
-363.4
139.9
659.5
21.9
-199.6
91.6
-202.6
-67.5
7
-26.8
-111.1
-39
-280.2
106.3
254.8
214.7

65

48.8

3605.45

142.4
274.9
234.4
-170.8
151.5
528.2
-67.9
356.2
785.4
343.2
193.3
762.7
848.3
402.8
533.7
1162
408.7
222.8
145.1
267.5
320.3
125.6
-109.4
-417.4
-257.7
-217.6
-231.5
-302.8
-12.4
-292.4
-338.2
7.2
-81.4
-52.7
-62
97.9
83.3
-181.6
-10.9
-127.5
-31.3
-40.8
42.9
433.8
-74.5
-90.6
-68.5

3634.25
3648.4
3663.95
3693.15
3720.55
3754.25
3701.05
3650.05
3502.95
3523.3
3635.1
3388.9
3246.9
3081.35
3199.35
3115.55
3177.7
3209.6
3214.9
3185.3
3071.05
2962.25
3091.35
3016.65
2937.3
2860.45
2724.35
2866.3
2776.85
2663.3
2632.8
2798.8
2890.35
2916.9
2861.3
2923.45
2994.75
3042.7
3050.3
2943.2
2982.45
2981.1
2997.9
3128.2
3150.95
3138.65
3197.1

67

6-Jul-06

10767.97

556

-213.4

3156.4

7-Jul-06
10-Jul-06
11-Jul-06
12-Jul-06
13-Jul-06
14-Jul-06
17-Jul-06
18-Jul-06
19-Jul-06
20-Jul-06
21-Jul-06
24-Jul-06
25-Jul-06
26-Jul-06
27-Jul-06
28-Jul-06
31-Jul-06
1-Aug-06
2-Aug-06
3-Aug-06
4-Aug-06
7-Aug-06
8-Aug-06
9-Aug-06
10-Aug-06
11-Aug-06
14-Aug-06
16-Aug-06
17-Aug-06
18-Aug-06
21-Aug-06
22-Aug-06
23-Aug-06
24-Aug-06
25-Aug-06
28-Aug-06
29-Aug-06
30-Aug-06
1-Sep-06
4-Sep-06
5-Sep-06
6-Sep-06
7-Sep-06
8-Sep-06
11-Sep-06
12-Sep-06
13-Sep-06

10509.53
10684.3
10614.35
10930.09
10858.5
10678.22
10293.22
10226.78
10007.34
10352.94
10085.91
10215.37
10415.61
10617.27
10741.59
10680.23
10743.88
10751.66
10876.19
10923.16
10866.51
10812.64
11014.97
11145.18
11149.17
11192.46
11312.99
11448.31
11477.48
11465.72
11511.68
11502.62
11406.65
11531.95
11572.2
11619.52
11706.85
11723.92
11778.02
11914.21
11904.6
11933.21
11853.85
11918.65
11550.69
11660.79
11893.79

9.1
-435.9
-47.4
-133.5
375.3
14.1
-343.6
-567.5
-307.1
89.9
321.3
-53.5
31.5
229.8
238
461.7
131.2
355.8
-46.3
104.1
240.1
-47
115.9
298.6
250.5
151.9
63.5
10.6
952
808.8
519.1
42.7
-9.7
-52.1
67.6
67.8
43.4
368.9
487.1
236.6
451.1
-69.6
451.2
-16.3
-48.9
94.7
-120.6

-416.3
62.3
-16.2
132.3
-15.9
-24.2
-38.3
142
-125.9
-80.1
4.3
88.6
235.2
276.1
262.8
-80
-40.8
-115.5
-100.5
171.2
77.6
99.3
-126.6
198
21.3
47.5
32.5
27
-23.8
-56.8
3.5
-28.1
-227.5
58.6
194
-10.8
73.1
58.3
54.5
-118
-57.6
62.2
128.7
-119.8
192.8
-79.5
112.5

3075.85
3142
3116.15
3195.9
3169.3
3123.35
3007.55
2993.65
2932.75
3023.05
2945
2985.85
3040.5
3110.15
3156.15
3130.8
3143.2
3147.8
3182.1
3190
3176.75
3151.1
3212.4
3254.6
3260.1
3274.35
3313.1
3356.05
3353.9
3356.75
3366
3364.6
3335.8
3370.4
3385.95
3401.1
3425.7
3430.35
3413.9
3435.45
3476.85
3473.75
3477.25
3454.55
3471.45
3366.15
3389.9

62

69

14-Sep-06

11973.02

519.4

381.8

3454.55

15-Sep-06
18-Sep-06
19-Sep-06
20-Sep-06
21-Sep-06
22-Sep-06
25-Sep-06
26-Sep-06
27-Sep-06
28-Sep-06
29-Sep-06
3-Oct-06
4-Oct-06
5-Oct-06
6-Oct-06
9-Oct-06
10-Oct-06
11-Oct-06
12-Oct-06
13-Oct-06
16-Oct-06
17-Oct-06
18-Oct-06
19-Oct-06
20-Oct-06
21-Oct-06
23-Oct-06
26-Oct-06
27-Oct-06
30-Oct-06
1-Nov-06
2-Nov-06
3-Nov-06
6-Nov-06
7-Nov-06
8-Nov-06
9-Nov-06
10-Nov-06
13-Nov-06
14-Nov-06
15-Nov-06
16-Nov-06
20-Nov-06
21-Nov-06
22-Nov-06
23-Nov-06
24-Nov-06

12009.59
12071.3
11970.47
12109.14
12274.27
12236.78
12173.91
12321.19
12366.91
12380.74
12454.42
12366.39
12204.01
12389.41
12372.81
12365.83
12363.77
12353.49
12537.98
12736.42
12928.18
12883.83
12858.48
12723.59
12709.4
12736.82
12623.28
12698.41
12906.81
13024.26
13033.04
13091.12
13130.79
13186.89
13156.66
13072.51
13137.49
13282.91
13399
13425.5
13469.37
13505.89
13430.71
13616.77
13706.53
13680.83
13703.33

491.5
459
495.1
276.6
236
288.8
152.1
-268.5
34.9
555
719.5
1293.5
-294.3
-419.4
123.7
71
-45.7
96.4
803.4
539.3
1093.8
794.7
389
1007.9
-37.1
444.1
-23.2
168.8
493.3
496.7
323.8
368.5
139.1
227.4
422.9
335.5
-6.2
526.9
478.1
778.2
1523.8
99.6
1302.7
58
642.3
-21.1
1178.7

-2.4
-16.8
-1.9
63.8
-269.3
191.6
-135.3
224
468.5
-115.5
308.7
121.1
19.1
-131.5
89.2
116.8
-81.7
-108.6
100.2
-37.7
-40.8
65.6
-121.1
-176.7
-71
-1.3
-4.9
-105.1
-5.1
289.6
147.4
53.9
344.7
146
77.7
164.3
-15
-274.9
-155.2
129.9
52.1
-108
206.5
362.4
85.8
-285.8
-78.8

3471.6
3478.6
3492.75
3457.35
3502.8
3553.05
3544.05
3523.45
3571.75
3579.3
3571.75
3588.4
3569.6
3515.35
3564.9
3569.7
3567.15
3571.05
3558.55
3621.05
3676.05
3723.95
3715
3710.65
3677.8
3676.85
3683.5
3657.3
3677.55
3739.35
3769.1
3744.1
3767.05
3791.2
3805.35
3809.25
3798.75
3777.3
3796.4
3834.75
3858.75
3865.9
3876.3
3876.85
3852.8
3856.15
3918.25

71

27-Nov-06

13773.59

994.6

206.3

3954.75

28-Nov-06
29-Nov-06
1-Dec-06
4-Dec-06
5-Dec-06
6-Dec-06
7-Dec-06
8-Dec-06
11-Dec-06
12-Dec-06
13-Dec-06
14-Dec-06
15-Dec-06
18-Dec-06
19-Dec-06
20-Dec-06
21-Dec-06
22-Dec-06
26-Dec-06
27-Dec-06
28-Dec-06
29-Dec-06
2-Jan-07
3-Jan-07
4-Jan-07
5-Jan-07
8-Jan-07
9-Jan-07
10-Jan-07
11-Jan-07
12-Jan-07
15-Jan-07
16-Jan-07
17-Jan-07
18-Jan-07
19-Jan-07
22-Jan-07
23-Jan-07
24-Jan-07
25-Jan-07
29-Jan-07
2-Feb-07
5-Feb-07
6-Feb-07
7-Feb-07
8-Feb-07
9-Feb-07

13601.95
13616.73
13844.78
13874.33
13937.65
13949
13972.03
13799.49
13399.43
12995.02
13181.34
13487.16
13614.52
13731.09
13382.01
13340.21
13384.86
13471.74
13708.34
13859.69
13846.34
13786.91
13942.24
14014.92
13871.71
13860.52
13652.15
13566.33
13362.16
13630.71
14056.53
14129.64
14114.73
14131.34
14217.75
14182.71
14209.24
14041.24
14110.46
14282.72
14211.96
14403.77
14515.9
14478.19
14643.13
14652.09
14538.9

405.6
-335.3
258.1
349.3
-2813.8
433.2
244.2
10.1
-152.6
422.3
95.2
-96.9
148.6
-46
-182.7
-673.4
-365.1
264.8
8.2
-153
-368.2
-1049.7
331.9
3353.3
207.8
-262.2
0.9
-3075.7
-368.2
-1106.8
159.2
207
-238.9
101.3
91.2
111.9
76.8
319.8
269.1
172.7
141
-469.7
664.6
345
656
545.4
698.9

-276.2
-339.5
-26.1
-269
116.5
-88.4
304.3
43.1
50.5
-177.4
4.2
67.8
-657.2
-550.1
-231.8
-71.7
150
45.5
10.7
460.5
236.2
347.9
336.4
356.1
677.1
225.1
-8
193.8
-21.4
15.5
-148.3
-364.6
-123.6
-328.4
637.1
103.5
71.8
89.6
59
-402
-54.2
-537.1
-351.2
145.9
-66.9
-77.6
-165.5

3945.45
3950.85
3968.9
3921.75
3928.2
3954.5
3997.6
4001
4015.75
4015.95
4015.35
3962
3849.5
3716.9
3765.2
3843.05
3888.65
3928.75
3832
3815.55
3833.5
3871.15
3940.5
3974.25
3970.55
3966.4
4007.4
4024.05
3988.8
3983.4
3933.4
3911.4
3850.3
3942.25
4052.45
4078.4
4080.5
4076.45
4109.05
4090.15
4102.45
4066.1
4089.9
4147.7
4124.45
4183.5
4215.35

64

73

12-Feb-07

14190.7

274.6

-28.3

4195.9

13-Feb-07
14-Feb-07
15-Feb-07
19-Feb-07
20-Feb-07
21-Feb-07
22-Feb-07
23-Feb-07
26-Feb-07
27-Feb-07
28-Feb-07
1-Mar-07
2-Mar-07
5-Mar-07
6-Mar-07
7-Mar-07
8-Mar-07
9-Mar-07
12-Mar-07
13-Mar-07
14-Mar-07
15-Mar-07
16-Mar-07
19-Mar-07
20-Mar-07
21-Mar-07
22-Mar-07
23-Mar-07
26-Mar-07
28-Mar-07
29-Mar-07
30-Mar-07
2-Apr-07
3-Apr-07
4-Apr-07
5-Apr-07
9-Apr-07
10-Apr-07
11-Apr-07
12-Apr-07
13-Apr-07
16-Apr-07
17-Apr-07
18-Apr-07
19-Apr-07
20-Apr-07
23-Apr-07

14090.98
14009.9
14355.55
14402.9
14253.38
14188.49
14021.31
13632.53
13649.52
13478.83
12938.09
13159.55
12886.13
12415.04
12697.09
12579.75
13049.35
12884.99
12902.63
12982.98
12529.62
12543.85
12430.4
12644.99
12705.94
12945.88
13308.03
13285.93
13124.32
12884.34
12979.66
13072.1
12455.37
12624.58
12786.77
12856.08
13177.74
13189.54
13183.24
13113.81
13384.08
13695.58
13607.04
13672.19
13619.7
13897.41
13928.33

218.7
-239.6
210.5
617.1
220.2
473.9
-40.2
-225.2
4287.2
-582.1
-415.7
-1644.3
-438.7
324.9
-312.7
-570.4
84.1
115.8
395.7
204.3
-84
-861.4
18.5
2.1
-250
136.3
164.5
713.1
678.5
80.5
520.2
-359
840.8
-473.5
-169.9
-2.2
567.5
569.4
402.6
101.9
55.2
475.7
788.3
648.5
640.1
-73.4
748.7

-37.8
-193.1
-190.8
-389.4
24.9
-481.1
104.9
130.8
3
17.8
0.7
37.2
270.6
348.6
243.9
-29.1
-125.3
166.1
68.4
-379.6
-39.8
-384.3
-145.8
-13.5
38.2
-206.4
-209.6
33.1
57
-56.3
91.8
-168.2
-295.3
-206.8
93.7
5.8
70.5
-102.1
-138.1
41
46.3
-470.1
289.4
-21
262.2
204.9
-251.1

4224.25
4223.4
4187.4
4058.3
4044.55
4047.1
4146.2
4164.55
4106.95
4096.2
4040
3938.95
3942
3893.9
3745.3
3811.2
3726.75
3576.5
3655.65
3626.85
3761.65
3718
3734.6
3770.55
3641.1
3643.6
3608.55
3678.9
3697.6
3764.55
3875.9
3861.05
3819.95
3761.1
3798.1
3821.55
3633.6
3690.65
3733.25
3752
3843.5
3848.15
3862.65
3829.85
3917.35
4013.35
3984.95

24-Apr-07

14136.72

-68.5

25-Apr-07
26-Apr-07
27-Apr-07
30-Apr-07
3-May-07
4-May-07
7-May-07
8-May-07
9-May-07
10-May-07
26-Jun-07
11-May-07
14-May-07
27-Jun-07
15-May-07
16-May-07
28-Jun-07
17-May-07
29-Jun-07
18-May-07
21-May-07
2-Jul-07
22-May-07

14217.77
14228.88
13908.58
13872.37
14078.21
13934.27
13879.25
13765.46
13781.51
13771.23
14501.
08
13796.16

23-May-07
3-Jul-07
24-May-07
25-May-07
4-Jul-07
28-May-07
29-May-07
5-Jul-07
30-May-07
31-May-07
6-Jul-07
1-Jun-07
4-Jun-07
9-Jul-07
5-Jun-07
6-Jun-07
10-Jul-07
7-Jun-07
8-Jun-07
11-Jul-07
11-Jun-07
12-Jun-07
12-Jul-07
13-Jun-07
14-Jun-07
13-Jul-07
15-Jun-07
18-Jun-07
16-Jul-07
19-Jun-07
17-Jul-07
20-Jun-07
18-Jul-07
21-Jun-07
19-Jul-07
22-Jun-07
20-Jul-07
25-Jun-07
23-Jul-07

13965.86
14431.
13929.33
06
14127.31
14504.
57
14299.71
14659.
14303.41
51
14418.6
14806.
14453.72
51
14363.26
14880.
14218.11
24
14338.45
14861.
14397.89
89
14508.21
14964.
14411.38
12
14544.46
15045.
14570.75
73
14495.77
15009.
14535.01
88
14255.93
14956.
14186.18
45
14063.81
14910.
14083.41
62
14130.95
15092.
14003.03
04
14203.72
15272.
14162.71
72
14080.14
15311.
14295.22
15289. 5
14411.82
15301.95
14499.17
15550.24
14467.13
15565.36
14487.55
15732.72

75

19.1

4011.6

501.5
961.5
359.8
-194.8
-304.6
56.2
212
96.7
-222.1
23.3
497.8
191.5
-336.2
-299.6
60.5
-330.8
-470.5
-139.2
-441.8
1060.8
1260.3
5837.1
477.6
450.8
200.7
446
319.5
410
-147.1

-25.8
190.8
252.6
361.1
251.8
17.8
-38.7
71.2
298
109
158.2
21.7
-18.8
76
-124.2
226.6
-9.5
100.7
-7.3
40.1
-77.8
162.2
335.6
630.5
122.9
-135
313
97.9
-47.5

3997.65
4083.55
4085.1
4141.8
4167.3
4177.85
4083.5
4087.9
4150.85
4117.35
4248.65
4111.15
4077
4267.4
4079.3
4066.8
4252.05
4076.65
4259.4
4134.3
4120.3
4285.7
4170.95

324.2
824.8
837.4
-377.1
1275
310.4
482.4
3179.3
222.1
-37.8
889.3
-69.6
-222.8
702.1
-936.2
-54.6
363.5
545.3
-307.8
699.6
211.8
-13
2346.4
-28.9

16.2
187.9
-446.8
38.3
-201.6
153.3
-2.2
122.1
411.4
65.2
-410.5
365.5
15.6
195.2
51.1
-134
28.4
-38.5
232.4
-190.1
-23.2
-326.8
-167.3
-67.9

4246.2
4318.3
4204.9
4248.15
4313.75
4256.55
4293.25
4357.55
4249.65
4295.8
4359.3
4297.05
4267.05
4353.95
4284.65
4198.25
4384.85
4179.5
4145
4419.4
4145.6
4155.2
4406.05
4113.05

1660.1
653.1

-331.7
-33.1

4387.15
4170

946.4
-117

117.1
209.4

4446.15
4171.45

1233.7
1641.6

295.8
208.2

4504.55
4147.1

883.1
78.2

-371.9
-33.9

4512.15
4214.3

1223.1

-103

4496.75

1096

-174.8

4499.55

1285.6

130

4562.1

-59.2

-316.5

4566.05

248.2

-48.5

4619.35

-1222.4

-486.8

4620.75

4219.55
4263.95
4214.5
4260.9
4282
4278.1

2
24-Jul-07
25-Jul-07
26-Jul-07
27-Jul-07
30-Jul-07

15794.
92
15699.
33
15776.
31
15234.
57
15260.

66

91
31-Jul-07
1-Aug-07
2-Aug-07
3-Aug-07
6-Aug-07
7-Aug-07
5-Sep-07
8-Aug-07
6-Sep-07
9-Aug-07
7-Sep-07
10-Aug-07
10-Sep-07
13-Aug-07
11-Sep-07
14-Aug-07
12-Sep-07
16-Aug-07
13-Sep-07
17-Aug-07
14-Sep-07
20-Aug-07
17-Sep-07
21-Aug-07
18-Sep-07
22-Aug-07
19-Sep-07
23-Aug-07
20-Sep-07
24-Aug-07
21-Sep-07
27-Aug-07
24-Sep-07
28-Aug-07
25-Sep-07
29-Aug-07
26-Sep-07
30-Aug-07
27-Sep-07
31-Aug-07
3-Sep-07
28-Sep-07
4-Sep-07
1-0ct-07
3-0ct-07
4-0ct-07
5-0ct-07
8-0ct-07
9-0ct-07

15550.
99
14935.
ll
14985.
l
15138.
4
149G3.
G3
14932.4
ll
15446.
15307.
15
98
15616.
15100.
31
15
15590.
14868.
42
25
15596.
1501l.
83
21
15542.
15000.
ll
91
15505.
14358.
36
21
15614.
14141.
44
52
15603.
1442l.
8
55
15504.
13989.
43
11
15669.
14248.
12
66
16322.
14163.
75
98
16347.
14424.
95
87
16564.
14842.
23
38
16845.
14919.
83
19
16899.
14992.
54
G4
16921.
15121.
39
l4
17150.
15318.6
56
15422.
17291.
G5
1
15465.
17328.
62
17847.
04
17777.
14
17773.
36
17491.
39
18280.
24

-150

51.6

4588.7

433.6

0.9

4619.8

-982.7

251.6

4445.2

-419

523.1

4440.05

192.8

186.3

4528.85

-1166.6

-147.5

4345.85

630.4
-123.6

726.4
-7.5

4412.3
4356.35

410.4
190.2

463.6
256.8

4464
4401.55

623.1
382.6

142.5
47.9

4474.75
4339.5

580.9
-408.1

98.8
-5.2

4479.25
4356.35

-62.9
-520.2

67.4
377.3

4475.85
4462.1

445.6
-127.5

45.2
45.3

4518.6
4403.2

281.9
-2849.9

-187.7
-169.8

4509.5
4333.35

-46.6
-3242.7

10.1
23

4507.85
4373.65

1159.4
92.8

-179.3
151.5

4497.05
4370.2

-267.4
-9.8

73.3
239.2

4496.85
4178.6

-137.5
-668.1

80
878.3

4528.95
4108.05

2484.5
330.4

-217.1
152.3

4518
4209.05

1629.5
414.5

-203.6
-16.5

4494.65
4074.9

924.3
1201.8

-19
211.6

4546.2
4153.15

1284.4
365.6

491.1
331.4

4732.35
4114.95

1550.3
-192.1

-234.6
84.7

4747.55
4190.15

1004
-664.5
677.3
2433.3

128.7
345.4
45.9
-35.4

4837.55
4302.6
4320.7
4932.2

527.7
3493.3

59.8
-430.5

4359.3
4938.85

2196

-517.5

4940.5

3161.5

92.7

5000.55

575

31.2

5021.35

-127.8

5068.95

-102.1

5210.8

3419.9

10-0ct-07

18658.
25

1951.1

-532.1

5208.65

11-0ct-07

18814.
07
18419.
G4
19058.
67
19G51.
86
18715.
19929.82
17998.06
39
19784.
17559.
89
98
19698.
17613.
36
99
19633.
18492.
36
84
19280.
18512.
8
91
18602.
18770.
62
89
18526.
19243.
32
1l
18852.
19977.
87
67
19247.
19783.
54
51
19127.
19837
73
99
18938.
19724.
87
35
19003.
19976.
26
23
19363.
19590.
19
78
19603.
19400.
41
67
19529.
19289.
5
83
19738.
19058.
07
93
19795.
18907.
87
6
19966
18737.22
19930.
19035.
68
48
20290.
89

1747.9

-274.9

5185.85

991

-340.9

5327.25

781

-354.5

5441.45

3858.5

5524.85

1154.1

-723.8

5428.25

122.2
-1776.6

-139.4
111.4

5617.1
5670.4

952
125.7

-12.8
-300.3

5695.4
5668.05

788.4
-3215.5

483
16.2

5937.9
5559.3

-79.1
-1210.3

187.7
-265.5

5912.1
5351

-26.8
777

142.9
-231.7

5906.85
5215.3

-1072.1
1861

-255.5
-326.3

5907.65
5184

-2222.4
213

138.2
286.8

5780.9
5473.7

-843.9
-256.8

-151.1
337.4

5561.05
5496.15

-173.4
1047.4

305.2
735.3

5519.35
5568.95

470.2
-303.3

334.7
831.4

5608.6
5702.3

-263.7
228

252.9
421.1

5731.7
5905.9

-450
180.6

128.6
-533.6

5698.15
5868.75

-977.6
-761.4

57.1
-11.2

5617.55
5900.65

1480.4
-656.8

403.4
-358

5634.6
5866.45

114.4
5.1

660.5
218

5762.75
5932.4

19.5
37.7

449.4
83.5

5865
5847.3

1081.3

-25.7
62.8

5858.35
5786.5

822.4
-286.9
5.2
-820

-297.5
-158.9
97.7
-218.8

5940
5782.35
5954.7
5698.75

300.6

72.4

5974.3

689.9

-292.1

5960.6

59.8

308.1

6097.25

1082.1

37.1

6159.3

407.5

-181.1

6058.1

-1098.7

-218.9

6047.7

12-0ct-07
15-0ct-07
16-0ct-07
17-0ct-07
14-Nov-07
18-0ct-07
15-Nov-07
19-0ct-07
16-Nov-07
22-0ct-07
19-Nov-07
23-0ct-07
20-Nov-07
24-0ct-07
21-Nov-07
25-0ct-07
22-Nov-07
26-0ct-07
23-Nov-07
29-0ct-07
26-Nov-07
30-0ct-07
27-Nov-07
31-0ct-07
28-Nov-07
1-Nov-07
29-Nov-07
2-Nov-07
30-Nov-07
5-Nov-07
3-Dec-07
6-Nov-07
4-Dec-07
7-Nov-07
5-Dec-07
8-Nov-07
6-Dec-07
9-Nov-07
7-Dec-07
12-Nov-07
10-Dec-07
13-Nov-07
11-Dec-07
12-Dec-07
13-Dec-07
14-Dec-07
17-Dec-07
18-Dec-07

20375.
87
20104.
39
20030.
83
19261.
35
19079.
64

68

19-Dec-07

19091.

-2449.8

-199

5777

-1092.5

346.6

5742.3

-515.8

123.6

5751.15

167.4

658.2

5766.5

2420.5

830.1

5985.1

944

742.7

6070.75

1140.9
-1351.2

716.9
874.4

6081.5
5203.4

797.9
669.1

34.3
350.1

6079.7
5033.45

142.3
-1513.4

-178.4
221.2

6138.6
5383.35

-244.5
-285.1

183.5
368.8

6144.35
5274.1

725.1
-611.4

295.2
-117.7

6179.4
5280.8

508.8
-3393.4

490
416.3

6178.55
5167.6

-80.9
1034.3

616.6
2134.5

6274.3
5137.45

1053.4
3810.7

30
100

6279.1
5317.25

274.6
576.9

12.5
818.9

6287.85
5463.5

-630.8
-528.2

-201.2
-297.5

6272
5483.9

113.7
-168.4

46.3
-212.2

6156.95
5322.55

174.4
-1845.6

-274.2
-78.4

6200.1
5133.25

225.8
-115.1

-551.4
-293.5

6206.8
5120.35

-2279.6
349

-519.5
-99.9

6074.25
4838.25

-2186
-1183.1

-59.5
600.4

5935.75
4929.45

-1356.1
1147.5

460.9
296.3

5913.2
5202

-2425.7
-115.9

-271.2
161.9

5705.3
5302.9

-2256.2
1585.1

2001.8
456.7

5208.8
5276.9

-2499.9
56.7

1195.1
-326.8

4899.3
5280.8

285.6

-191.3

5154.45

-453.8

-226.8

5191.8

738.5

-163.6

5110.75

85.4

-140.5

5200.7

396.4

525.9

5270.05

96
20-Dec-07

19162.
57

24-Dec-07

19854.
12

26-Dec-07

20192.
52

27-Dec-07

20216.
72

28-Dec-07
31-Dec-07
25-Jan-08
1-Jan-08
28-Jan-08
2-Jan-08
29-Jan-08
3-Jan-08
30-Jan-08
4-Jan-08
31-Jan-08
7-Jan-08
1-Feb-08
8-Jan-08
4-Feb-08
9-Jan-08
5-Feb-08
10-Jan-08
6-Feb-08
11-Jan-08
7-Feb-08
14-Jan-08
8-Feb-08
15-Jan-08
12-Feb-08
16-Jan-08
13-Feb-08
17-Jan-08
14-Feb-08
18-Jan-08
15-Feb-08
21-Jan-08
18-Feb-08
22-Jan-08
19-Feb-08
23-Jan-08
20-Feb-08
24-Jan-08
21-Feb-08
22-Feb-08
25-Feb-08
26-Feb-08
27-Feb-08
28-Feb-08

20206.
95
74
20286.
18361.
99
66
20300.
18152.
71
78
20465.
18091.
3
94
2G345.
17758.
2
64
20686.
17648.
89
71
20812.
18242.
65
58
20873.
18660.
33
32
20869.
18663.
78
16
20582.
18139.
G8
49
20827.
17526.
G5
93
20728.
17464.
G5
89
20251.
16608.
G9
01
19868.
16949.
11
14
19700.
17766.
82
63
19013.
18115.
l
25
17605.
18048.
35
05
16729.
18075.
07
66
17594.
1T61T.
07
6
17221.
17734.
68
11349.
07
11650.
51
11806.
19
11825.
99
11824.
48

Table 2 Variables Calculated for Sensex and FII investments from the table 1 data for the
calculation of R2 .
Table 3 Variables Calculated for Sensex and Mutual Fund investments from the table
1 data for the calculation of R2 .

Table 4 Variables Calculated for Nifty and FII investments from the table 1 data for the
calculation of R2 .
Table 5 Variables Calculated for Nifty and Mutual Fund investments from the table 1 data for the
calculation of R2 .

70