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Foreign Institutional Investors (FIIs) are a significant cause of the stock movement in the Indian stock market, as we often read about how FII buying or selling affects the total market sentiment. Still, we observed that most such studies only consider broad market indices and not how FIIs impact different sectors differently. In this paper, we seek to find the sectoral relationship between FII inflows and returns of three very important sectors in India-Banking, Information Technology, and Fast-Moving Consumer Goods. The necessary data for this study is purely secondary in nature. These were gathered from publicly available sources like NSE and NSDL for a selected period. We used very simple analytical tools such as trend analysis, correlation, and linear regression to test and compare how each sector responds to changes in FII activity. With this analysis, we try to identify which sector is more responsive to FII movements and which sector can keep itself relatively stable. We wish to present a clear, easily understandable comparative study that would be useful to students, investors, and all those interested in knowing the dynamics of FIIs and sectoral performance.
Keywords:
Foreign Institutional Investors (FIIs); Sectoral Returns; Banking Sector; IT Sector; FMCG Sector; Correlation; Regression Analysis; Indian Stock Market.
Cite Article:
"Sector Analysis of the Impact of Foreign Institutional Investment (FII) on Indian Stock Market Returns - Evidence from Banking, IT, And FMCG Sectors", International Journal for Research Trends and Innovation (www.ijrti.org), ISSN:2455-2631, Vol.10, Issue 11, page no.a635-a642, November-2025, Available :http://www.ijrti.org/papers/IJRTI2511076.pdf
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ISSN:
2456-3315 | IMPACT FACTOR: 8.14 Calculated By Google Scholar| ESTD YEAR: 2016
An International Scholarly Open Access Journal, Peer-Reviewed, Refereed Journal Impact Factor 8.14 Calculate by Google Scholar and Semantic Scholar | AI-Powered Research Tool, Multidisciplinary, Monthly, Multilanguage Journal Indexing in All Major Database & Metadata, Citation Generator