A Study on Domestic Institutional Investors Growth and Their Impact On Indian Market From 2014-15 To 2023-24

Abstract

The study investigates the growth trajectory of domestic institutional investors (DIIs) in the Indian financial landscape and assesses their profound impact on the country's economy. With the liberalization of the Indian economy and the subsequent surge in capital markets, DIIs have emerged as significant players, wielding substantial influence over market dynamics. This paper delineates how the growing participation of DIIs in capital markets enhances liquidity, fosters market efficiency, and promotes price discovery. Additionally, the study explores the role of DIIs in channelizing savings into productive investments, thereby fuelling economic growth and development. Moreover, the study investigates the spill over effects of DII activities on various sectors of the economy, including infrastructure, manufacturing, and services. By facilitating capital formation and fostering entrepreneurship, DIIs contribute to job creation, income generation, and poverty alleviation. This study underscores the pivotal role played by domestic institutional investors in shaping the trajectory of the Indian economy. It provides valuable insights for policymakers, regulators, investors, and other stakeholders to harness the potential of DIIs effectively while mitigating associated risks, thereby fostering sustainable economic growth and financial stability.