Huge sell-off by Foreign Institutional Investor(FII) in March-2020 – Biggest in the History.

We all been hearing that FII is withdrawing the funds from the Indian Market. But really how much they have taken out? In this article, we will throw some light on these figures.

In the recent decade, the previous fall which we have seen is the recession which we passed in 2008. After that only this year FII is pulling out Money heaving form Indian Market. It’s surprising to see that March is the month which is recorded as the highest outflow of Funds from India. Look at the below picture to understand more on the same.

The above image shows the net activity of FII over Indian Markets. If you refer to the above Image, FII has taken out heavily in the year 2008 and for the whole year, we had a negative value of -101802.57 crores. However, in the year 2020 that is only for 3 months, we are seeing the figures which are very close to the yearly withdrawal during the recession.

If we look at the monthly figures, we could see that heavy selling for the whole month of March and these numbers are highest in the History on Monthly basis. The selling has not stopped yet.

However, the entire selling is being managed by the DII and market is not falling as expected based not the FII selling data. Now, who is playing smart?

In the below pictures we can understand clearly as who is Investing in the market. There has been huge amount pumped in by the DII’s like Banks, Insurance Companies, Mutual Funds Hours, Long Term Investment Institutions and HNI’s. And these are acting as a strong force for the selling done by FII and acquiring all the quality stocks every dip on.

In this game of biggies, all the small and retail investors are closing their portfolio with deep red. Always play smart in the Market.
“Bulls make money, bears make money, pigs get slaughtered“. – Always go with Trend.

COVID-19 concerns

No doubt the Carona Virus as shaken worldwide Stock Market and we have not yet seen any kind of relief. Things are getting worsen day by day and we will see further downfall we don’t find any end for this.

A piece of simple advice – Sit with cash balance and enjoy the fall. Every fall in the Stock Market is a potential opportunity to enter into fundamentally strong stocks at a very good valuation.

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