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General

What’s with the DIIs?

From data on the NSE, the last month or so has seen continuous selling in the cash market by Dmestic Istitutional Inestors (DIIs) and continuous buying by the Foreign Institutional Investors (FIIs).

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This hardly says anything bad – the last time the DIIs were continuous net sellers was Sep-Oct 2007 when the index moved 20%.

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Of course it went on to go up another 15% before it collapsed.

In a way it’s a sign – if the indices drop a lot suddenly, there’s someone with cash sitting to provide a floor. But that could be very temporary – if there’s a crisis, there’s not enough to support a steep fall. Even so, it’s a short term bullish indicator.

  • Anonymous says:

    >FIIs move on Global cues. FIIs probably see no near term risk. But the biggest risk looming is China trade war and consequent effect of double dip recession in US which will provoke further deleveraging and sharp sell of in all markets around the world. But this will take time. Hence Nifty 6.2k seems possible for now.

  • lukkha says:

    >How much is related to the tax year coming to a close? Any thoughts on patterns due to the tax year end (conditional on whether the stock market was up/down over the last year)?