Babu, M. Suresh; Prabheesh, K.P. - In: International Journal of Trade and Global Markets 1 (2008) 3, pp. 259-265
This paper examines the dynamic interaction between FII flows and stock market returns in Indian stock market. Using daily data from January 2003 to February 2007, VAR framework and Granger causality test, we find the existence of bidirectional causality between FII flows and stock returns....