Let's Study the FII Selling Patterns

Today’s Daily Byte

Nifty registered a flat day today. If you see, yesterday Nifty finally broke its eight-day losing streak by registering positive gains. But today, it was almost on the verge of losing about 0.8 to 1%. However, there was a good rescue done by some of the IT stocks, especially after 12pm when we saw good traction coming in IT stocks. The earlier sell-off was primarily driven by weakness in the FMCG counter, consumption counter basically, and some of the auto stocks. We’ll see more of that as we progress through the episode.

So how long should you withstand this pain in the markets? In today’s episode, we try to convey this through a very interesting statistic.

Reading Time : 4 Minutes

Cannot neglect the impact of FIIs yet ?

According to Zafar Shaik, whenever Foreign Institutional Investors (FIIs) have sold heavily in the past 20 years, the market has gone down. If we analyze past data, FIIs sold significantly in 2011, 2013, 2015, 2018, and 2019. Major selling also happened during COVID in 2020, followed by another wave in 2022. Now, we are once again seeing a phase of heavy FII outflows... . . . .

Reading Time : 4 Minutes

Can you cut the noise?

This tabulation of market corrections in the US since the 2008 financial crisis provides some key insights. Before 2008, markets frequently experienced deep corrections, but in the past 16-17 years, the median correction in the S&P 500 has been just 7.6%. The deepest decline was around 35% during the COVID-19 crisis, followed by another significant drop in early 2022 when the Russia-Ukraine war began. . . . .

Reading Time : 3 Minutes