We have studied the investment behaviour of ‘foreign institutional investors’ (FIIs) and ‘domestic institutional investors’ (DIIs) in the Indian stock market for positive feedback trading and smart money value investments. We have collected the daily investment of FII and DII in Indian stock markets along with NIFTY daily returns. We have used multivariate causality approach VAR and found that FII investments follow positive feedback trading approach whereas DII follow smart money value investments in the Indian stock market.
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