International Research Journal of Education and Technology

The foreign capital in the country is made up mostly of the Foreign Institutional Investors (FII). FII proposes investments in India on behalf of foreign corporates, foreign individuals and institutions, funds or portfolios established outside India. The NSE offers capital raising capabilities for corporations and a trading platform for equities, debt, and derivatives, including currencies and mutual fund units. The capital inflow helps in developing the economy of the nation. This study focused on the impact FIIs have on the National Stock Exchange of India. The study has been done for the past ten years (2012-13 to 2021-22) of data, which were available on the NSE website, the SEBI website, and other websites. To find the impact of FII on NSE, the cointegration and causality between FII net investment and Nifty 50 were found, which shows that FII has an influence on NSE.

Keywords: FII, NSE, investment, causality, Nifty 50.