Indian Capital market was opened to FII investment from 1991.Clark and Berko (1997) emphasize the beneficial effects of allowing foreigners to trade in stock markets and outline the "base- broadening" hypothesis. Other researchers and policy makers are more concerned about the herding behavior of foreign institutions and the potential destabilization of emerging stock markets. These issues are considered here in the context of foreign institutional investors trading activities in India.Regression analysis, Descriptive Statistics, Normality Test, Unit Root Test, Lag Length Selection Criteria,...