• Dr. R. Kanagaraj

Economic growth is said to be significantly influenced by capital. Domestic capital is insufficient to cover all economic demands for a developing country like India. Foreign funding is essential in that case. FDI and FII are the two categories of foreign capital. FDI is regarded as a more dependable source of foreign exchange than FII. Nonetheless, the stock market is directly impacted by FII inflows and outflows. FIIs have thus grown to be significant participants in the Indian stock market. This study looks at the relationship between FII and Nifty as well as the trajectory and pattern of FII flow in India. The recent expansion of Indian stock markets has been unprecedented.Growing development and expansion have brought about a substantial shift in the patterns of foreign investment in the stock markets.In this regard, the relationship between Nifty and Foreign Institutional Investors (FIIs) is being studied more and more by academics.The primary goal of this study is to examine this relationship across a tenyear period, from 2016 to 2025.The relationship between FII and the returns on the NIFTY50 broad market index is examined.This study employs growth trend analysis, regression, and correlation to determine the relationship between foreign institutional investors and the nifty. The financial sector reform, which started in the early 1990s, fundamentally changed India's development strategy.Using non-debt-creating capital flows has replaced the original approach of financing the current account deficit mainly through loan flows and official development aid. Since September 14, 1992, foreign institutional investors (FIIs) have been allowed to invest in financial products in India under this strategy. As a result, the Indian financial markets have seen major changes in terms of volume, size, depth, and type. Because they supply financing and funds to businesses in developing countries, FIIs are essential to emerging economies. Foreign institutional investors are vital to any economy since big businesses like investment banks, mutual funds, and others make substantial financial investments in Indian markets. These investors typically include investment banks, insurance companies, mutual funds, and hedge funds. FIIs typically own stock in global financial markets. The capital structures of the businesses in which FIIs are involved have frequently improved as a result of the solid cash inflow.FIIs thus encourage financial innovation and the growth of the capital market. An FII's entry could cause a significant swing in the domestic financial markets.

FIIs,NSE,Correlation,Regression,Growthtrend

"FLOWS OF FOREIGN INSTITUTIONAL INVESTMENTS ON THE INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 9, page no.c658-c670, September-2026, Available :http://www.jetir.org/papers/JETIR2609272.pdf

"FLOWS OF FOREIGN INSTITUTIONAL INVESTMENTS ON THE INDIAN STOCK MARKET", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 9, page no. ppc658-c670, September-2026, Available at : http://www.jetir.org/papers/JETIR2609272.pdf