A STUDY ON DYNAMICS OF INTERRELATION AMONG FOREIGN PORTFOLIO INVESTOR AND THEIR INVESTMENT SEGEMETNS IN INDIAN MARKET

Dr.S.Christina Sheela; Dr.S.V.Soundaravalli; S.Santhosh

doi:10.63141/gijbr-V3N1-2026ID44

Authors

Dr.S.Christina Sheela Gnanam School of Business Author
Dr.S.V.Soundaravalli Kunthavai Naacchiyaar Govt. Arts College for Women, Autonomous, Thanjavur Author
S.Santhosh Gnanam School of BUsiness Author

DOI:

https://doi.org/10.63141/gijbr-V3N1-2026ID44

Keywords:

Foreign Portfolio Investment, Investment Patterns, CS-ARDL, Indian Capital Market, Equity, Debt, Hybrid Investments

Abstract

Foreign Portfolio Investment (FPI) plays a pivotal role in shaping capital market dynamics in emerging economies such as India. This study empirically examines the interrelationship between FPI flows and investment patterns across equity, debt, and hybrid instruments in the Indian financial market during the post-COVID period (2020–2024). Using secondary data sourced from the National Securities Depository Limited (NSDL) and employing advanced econometric techniques—namely the Cross-Sectionally Augmented Autoregressive Distributed Lag (CS-ARDL) model with Pooled Mean Group (PMG) estimation—the study identifies both short-run and long-run dynamics of FPI behavior. The findings reveal significant slope heterogeneity and cross-sectional dependence among investment strategies, underscoring the necessity of robust panel data methods. Empirical results indicate that hybrid investment strategies exert a positive and statistically significant influence on FPI patterns in both the short and long run, while debt investments demonstrate long-run significance. The study offers policy-relevant insights for regulators, policymakers, and market participants seeking to enhance investment stability and attract sustainable foreign capital.

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Author Biographies

Dr.S.Christina Sheela, Gnanam School of Business

Associate Professor in Finance & Accounting
Dr.S.V.Soundaravalli, Kunthavai Naacchiyaar Govt. Arts College for Women, Autonomous, Thanjavur

Associate Professor, Department of Commerce
S.Santhosh, Gnanam School of BUsiness

Assistant Professor in FInance

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