FII and DII Trading activity – August 2019
FII and DII Trading activity – August 2019
Last month, the Foreign Investors sold the stocks hugely in the Cash Market. The Government of India had also taken some steps to stimulate the Indian Economy like Changes on Taxation Policies, Announcement on Merger of Public Sector (PSU) Banks and given positive things for the Automotive Industry. However it's impact has not yet been favorable for the Indian Stock Market.
For the month of July and August 2019, the Foreign Investors (FII) had sold shares worth more than Rs. 30,000 Crore in two months. In the said two months, the Domestic Investors (DII) had invested more than Rs. 40,000 Crore in the Indian Cash Market. It's a positive sign for the Indian Equity place.
The Foreign Investors had a Gross purchase of Rs. 108,529 Crore and a Gross Sales of Rs. 123,358 Crore. So the Net Sales of RS. 14,828 Crore by the FII in the month of August 2019. On the other side, the Domestic investors bought shares, Gross purchase of Rs. 87,205 Crore and Gross Sales of Rs. 66,271 Crore. So, the DII had a net purchase of Rs. 20,933 Crore in the said period.
There are 20 Trading days happened in the month of August for the Indian Equity Market. The Foreign Investors had a positive purchase only for the 4 days out of 20 Trading days. Surprisingly, the Domestic investors had offered their investment in all Trading days for the month of August 2019.
The FII had sold their shares of worth more than Rs. 1,000 Crore in a Single day for the 6 Days. The Domestic Investors had bought shares of worth more than Rs. 1,000 as a Single day transaction for the 10 days.
It is noteworthy that the Foreign investors had a positive purchase of Shares for the last trading day of the month, worth Rs. 1,162 Crore. On that day, the Domestic investors were also Net purchase of Rs. 1,502 Crore.
In the recent trading days, the Market tempts for the High volatility due to Economic Statistics and related news of the Economy Slow down. The decline in the GDP of India could also have a negative impact on the Market. Unemployment rate is also rising and it is not telling anything good. However there are some activities being done on behalf of the Government.
If the Industry growth improves in the coming months, we can expect significant position in the Economy. But that is not the case right away. Global economy statistics often point to an Economic Downturn.
So, be Prepared to buy a good stock based on Value Investing. Opportunity is available at high when the Market is going downside. It is also best to look at the price of Gold and Silver from an Investment Standpoint.
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