“Testing The Impact Of FII Activity And DII Activity On Benchmark Index Nifty 50 Concerning India”

Abstract

The securities market reflects the economic condition of a nation. The securities markets’ performance mirrors the growth of a country and which is influenced by many parameters. The study aims to test the influence of DIIs and FII activity on the performance of the Indian Security market, National Stock Exchange’s benchmark index, Nifty50. Second-hand data was collected from the financial platforms to find the influence of FII and DII activity on Nifty50 benchmark index performance from April 2020 to December 2024. Statistical tools such as regression analysis, correlation test, and ANOVA were applied to the study. The major observations of the study revealed that there is a high degree of influence observed between the FIIs and DIIs activity and benchmark index nifty 50. The performance of the nifty50 index has a statistically significant association with FII activity and DII activity. It is also found that there is a strong negative correlation between FII activity and DII activity.