Purpose

This paper investigates herding behavior and its persistence among foreign institutional investors (FIIs) in the individual stocks of the energy sector of Indian stock exchange by focusing on post turmoil period. The study also examines the relation of herding with the individual return, market return, trading volume and conditional volatility of individual and market return.

Design/methodology/approach

The presence of herding is investigated by Lakonishok et al. (1992) model, value-based and count-based herd ratio measure among FIIs in individual stock of energy sector post turmoil period. Further, run test was employed to check the persistency in herding and multivariate distributed lag to investigate the relationship with the market determinant.

Findings

The result indicates the existence of herding in most of the companies and strong persistence in all the companies. The intensity of buy side herding is higher than sell side. Herding and individual return both are significant driving forces of FIIs herding, while trading volume and market volatility in few companies exhibit inverse relationship.

Research limitations/implications

This study is limited to investigation of energy sector stock.

Social implications

Stock market is significantly influenced by FIIs and their propensity to herd may generate instability in the stock market. Therefore, regulatory authority should continuously monitor the flow of fund by FIIs.

Originality/value

Herding in the individual stock of the energy sector was not previously performed.

中文翻译：

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印度股市能源板块的FII羊群效应

目的

本文通过关注后动荡时期，研究了外国机构投资者 (FII) 在印度证券交易所能源板块个股中的羊群行为及其持续性。该研究还考察了羊群效应与个人回报、市场回报、交易量以及个人和市场回报的条件波动性之间的关系。

设计/方法/方法

Lakonishok等人研究了放牧的存在。(1992) 模型，基于价值和基于计数的 FII 在动荡时期后能源部门个股中的羊群比率测量。此外，运行测试被用来检查羊群和多变量分布滞后的持续性，以研究与市场决定因素的关系。

发现

结果表明，大多数公司存在羊群效应，而所有公司都具有很强的坚持性。买方羊群的强度高于卖方。羊群效应和个人收益都是 FII 羊群效应的重要驱动力，而少数公司的交易量和市场波动率呈反比关系。

研究限制/影响

本研究仅限于对能源部门股票的调查。

社会影响

股票市场受 FII 的显着影响，其从众倾向可能会导致股票市场不稳定。因此，监管机构应持续监控境外机构投资者的资金流向。

原创性/价值

能源板块个股的羊群效应此前并未进行。