FII and DII Trading activity – March 2020

FII and DII Trading activity – March 2020


It was a bad time or bad days for the Global Equity Indices in the month of March 2020. Due to the Economy Slowdown for the past one - two years, the Covid-19 has also added the the Economy Crisis and hit the Stock Market Indices down - It's simply a Crash, but not a little correction.

The Stock Market Indices suffered a major downturn in the March 2020. This fall is similar to the 2008 Global Financial Crisis, but with a different perspective. At the end of March, the Foreign Institutional Investors were the Net Sellers of the month.

The Stock Market in India has been trading for 21 Days in the said above month. The Foreign Investors bought a shares worth of Rs. 1.54 Lakh crore and sold shares of worth Rs. 2.20 Lakh Crore. So, they are the Net sellers with an amount of Rs. 65,816 Crore in the month of March 2020.

On the other side, the domestic investors had bought a gross purchase of Rs. 1.57 Lakh crore and sold shares of worth Rs. 1.02 Lakh crore. Finally they arrived as a Net buyers for the month with an amount of Rs. 55,595 Crore.

The Foreign Institutional Investors (FII) have only sold shares for the past three months - Rs. 5,360 Crore in January, Rs. 12,684 Crore and Rs. 65,816 Crore in the month of March 2020.

SIP (Systematic Investment Plan) Investing in Mutual Funds were also encourages participation by Domestic Institutional Investors(DII). However the FII net sales have plunged the Indian Equity Market Indices. In this Current scenario, a temporary rally would also happen in the Equity Indices.

Long term investors should have the mindset of investing only based on Fundamentals. There is no hurry to entering the market to buy the shares and the finding the valuation is important at any cost.

Kindly share your views / comments with a smile :)

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