Foreign investors in India not causing market instability, study finds.
The article "Foreign Investors Under Stress: Evidence from India" investigates how foreign investors behave in extreme situations in the Indian financial market. The researchers looked at whether foreign investors are more likely to pull out or invest heavily during very good or very bad days, and if their actions can trigger financial instability. The study found that, in the case of India, financial globalization has not led to instability in the stock market.