Abstract: This research study examines the inflows and outflows of Foreign Portfolio Investment (FPI) in India and its effects on the Indian stock market. This study aims to analyze the impact of Foreign Portfolio Investment (FPI) fluctuations on the performance of major indices, including Nifty 50 and SENSEX, identify the sectors most impacted, and comprehend the influence of policy, economic, and global variables on these patterns. The study utilizes time-series data to ascertain that foreign portfolio investment flows exert both beneficial and detrimental effects on the market. Ultimately, policy suggestions are provided for investors and regulators.

Keywords - Foreign Portfolio Investment, FPI, Indian Stock Market, Nifty 50, SENSEX, Investment Flows, Sectoral Impact, Market Volatility.