AN ECONOMETRIC STUDY OF HERDING BEHAVIOUR OF DOMESTIC INSTITUTIONAL INVESTORS IN INDIAN CAPITAL MARKET: AN AUTO REGRESSIVE DISTRIBUTED LAG APPROACH

Tom Jacob (), Rincy Raphael () and Ajina V.S. ()
Additional contact information
Tom Jacob: Dept. of Commerce, Christ College, Irinjalakuda, Kerala, India
Rincy Raphael: Sri Ramakrishna Engineering College, Coimbatore, Tamil Nadu, India
Ajina V.S.: Christ College, Irinjalakuda, Kerala, India

Review of Economic and Business Studies, 2022, issue 29, 29-46

Abstract: The Indian equity market is one of emerging markets' best-performing and most promising markets. The funds that play a significant role in the Indian capital market are divided into two categories: domestic institutional flows and foreign institutional flows. There have been several studies on the flows of funds from foreign institutional investors, but only a few studies on domestic institutional investors have been conducted. Using monthly data from 2007 to 2021, this research study focuses on the impact of domestic institutional investment flow on the performance of stock market indexes. The study takes into account two sorts of variables: net flows of domestic institutional investors and the Sensex index. The data was obtained from the Reserve Bank of India's official website. The Granger Causality Test and the Auto Regressive Distributed Lag (ARDL) model reveal that domestic institutional investors have no beneficial impact on the Sensex since their investments have a short run impact on the index's movement during the entire study period.

Keywords: DIIs; Stock Market; ARDL; AIC; ADF (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rebs.feaa.uaic.ro/articles/pdfs/323.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2022:j:29:jacobt

DOI: 10.47743/rebs-2022-1-0002

Access Statistics for this article

More articles in Review of Economic and Business Studies from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().