ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Foreign Portfolio Investment in Indian Equity Markets-Has the Economy Benefited

Equity Markets Has the Economy Benefited?
Parthapratim Pal The mainstream argument that the entry of foreign portfolio investors wilt boost a country's stock market and economy does not seem to he working in India. The influx of Flls has failed to invigorate the stock markets. The supposed linkage effects have not worked in the way the mainstream model predicted. Instead there has been increased uncertainty and scepticism about stock markets. The view that the influx of portfolio investment leads to economic development is not supported by this study.

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