Abstract The purpose of this research paper is to investigate the performance and relationship of different Investor group particularly Foreign Institutional Investors, Domestic Institutional Investor and Individual Investor using daily net low in Indian equity market. We are examining the investor behavior before, during & after the inancial crisis (2008). Augmented Dickey Fuller tests have employed and found that all the net inlows are stationary at their level and market return stationary at irst difference. The causal relationship between all the investor group have checked through Granger Causality test and VAR in different time phase i.e. pre- crisis, during the crisis and after the crisis periods. The result reveals that the behavior of all the groups in all the phase of the crisis is not varying except domestic investor group performance. The Engle–Granger Co-integration has also proved that there is no co- integration between all different investor groups. Keywords: FII (Foreign Institutional Investors), Domestic Investor, Financial Crisis The Global Financial Crisis and Investor Behavior in Indian Equity Market Prakash Tiwari* and Monika Mehrotra** 1. Introducion The mayhem as started in the deregulated inancial markets of US showed its impact on Indian stock market in early 2008. The crisis did not remain conined to pockets of US credit and security markets, as can be witnessed from its spread to other nations developing & developed. Nor did it remain conined, from the very beginning, to the inancial sphere, thus impacting the already squeezed space of the real economy. Since year 2006, share market went through many phases. Investors were seen getting overjoyed at 21K and crying too when it crashed. * Associate Professor, Department of Management Studies, Dehradun Institute of Technology, Dehradun, India **Assistant Professor, Department of Management Studies, Mahadevi Institute of Technology, Dehradun, India The irst impact of the global crisis on India was felt in the stock market in January 2008. This came through the reversal of inlows from Foreign Institutional Investors (FIIs) into the country which was followed by domestic institutional investors & individual investors. India had received about US$ 17.7 billion as net equity investment inlows from FIIs during 2007. This turned into a net disinvestment of US$ 13.3 billion during the period from January 2008 to February 2009. This was the direct result of the massive de-leveraging of US banks after the inancial meltdown. The sudden withdrawal of FIIs from the Indian stock market brought about a crash in the market in January 2008. Watching the FII disinvestment DII & II also lost their conidence in the Indian Equity market which resulted in down fall of Indian stock market. The benchmark stock price index, the BSE Sensex, plummeted from 20,873 on 8 January to 9093 on 28 November 2008, a 56 per cent fall over a period of 11 months. After which the domestic sentiments had an effect & DII & Individual Investors showed a downfall. The fall in Wall Street started two months before in November 2007, but the intensity of the market crash taking place after a lag in Dalal Street (India’s stock exchange) had been much larger. Capital inlows under external commercial borrowings, short-term trade credit and external borrowing by banks dropped sharply from April 2008. After the macro-economic reforms in 1991, Indian economy has been increasingly integrated into the global economy. The inancial institutions in India are exposed to the world inancial market. This has signiicant impact on India’s stock market and exchange rate. India’s stock market index Sensex which touched above 21, 000 mark in the month of January, 2008 has plunged below 10, 000 during October.