Markets Crash From FII Selling?

Are FIIs responsible for the recent fall in Indian markets? Deepak Shenoy takes a long, hard look at the data - FIIs have bought over 40,000 crores since September, when we were last at 5400 on the Nifty - and in the last month, sold just 9000 crores.

This means FII selling can't be the reason - or at least, not the primary reason for a 15% crash.

Finally, what else it could be.

Please leave your comments, much appreciated!

Comments

Nice one again Deepak. I am

Nice one again Deepak. I am still learning so I do not have any arguments supporting or against ur content. But u may wan to check the audio quality once.. The last two videos audio quality has not been the like the first ones.. (and I don mean the narrator's voice here.. )

Second, I was thinking u were going to build this one up as a learning area where u get videos on fundamentals and more deeper technicals concepts.. I don how you are planning to position the website with videos on current affairs like this..

Just me two cents..

Thanks again for the useful insight..

Deepak, Something strange I

Deepak,
Something strange I get a clean blank screen where the video should be. Remember some silverlight or something needs to be downloaded. But no error nothing.

man do something please.
regards
Siddharth.

Deepak, I read your column

Deepak,

I read your column regularly and I like your perspective. Keep it up.

My take on your video is as follows:

1. Why are we looking at reasons for market correction? We must only look at the market action without trying to find reasons.

2. How can we say that there are not enough buyers? How can people sell if there are no buyers? Market would close down if there are either no buyers or sellers. Fact is people are not enthusiastic about buying or are buying at much lower prices.

I think this is a fantastic opportunity to buy blue chip NIFTY stocks at lower prices.

rgds
Vibhas

www.readingstockcharts.blogspot.com

Sidharth: Looking at it,

Sidharth: Looking at it, thanks for the feedback.

 

Vibhas: 1) Reasons - I am trying to debunk the reason quoted - I agree with you that reasons come later.

 

2) Not enough buyers makes prices fall - what happens is that desperate sellers sell at rock bottom values, and other people refuse to sell at these prices because there aren't enough buyers to absorb the selling at prices they want.

 

I'm not sure about blue chips at lower prices - these are still comparatively high numbers in terms of valuation for India.

Good post Deepak, enjoyed it

Good post Deepak, enjoyed it and learnt from it. Dont you think inflation is a bigger story than it seems to be, and it is definitely going to affect Q4 results?

This analysis is very

This analysis is very superficial becos it assumes that FII is a single entity. SEBI websites mentions there are more than 1000 institutes like that. So it might be easily possible that institutions who entered indian market when nifty was in 3000 range are exiting rightnow and the rise towards 6300 gave them a confidence that evenif they decide to sell a big chunk they will find buyer for the same.( liquidity risk would be less)

Abhijit
Pune

The point is that FII selling

The point is that FII selling wasn't single handedly responsible for the crash - there were other factors and those factors are perhaps far more important. It could even be an "unknown" factor - something we'll get to know later.

 

I'm not sure what you mean by "superficial" in the analysis.