Finance @ Knowledge Zone



FII Inflows - Is It Really Hot Money?

- by Subhasree Chakraborty & Ambar Roy *

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The following figure shows the relation between the Sensex and the FII Inflows for 2004

However, when we look at the shareholding pattern of FIIs in the Sensex companies, we see that the shareholding pattern of FIIs have remained relatively unchanged between March and June 2004.

Change in FII Shareholding in Sensex companies for March - June 2004

Moreover, even sharp changes in Sensex do not necessarily indicate a significant alteration of actual shareholding pattern of different investor groups even in the Sensex companies.

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* Contributed by -
Subhasree Chakraborty & Ambar Roy,
Department of Management Studies,
IIT Delhi.