On June 3, when the market was extremely bullish on the back of exit poll predictions, NSE data shows that retail investors net sold equities worth Rs 8,588 crore, thereby booking profits.
Foreign investors, who have been net sellers in the current calendar year, also continued to sell.
FIIs and mutual funds were net sellers, at Rs 19,000 crore, on June 4.
With the markets swinging over 1,000 points, retail investors are increasingly demonstrating maturity and confidence, leveraging better access to information and liquidity to capitalise on market downturns, he says.
A large section of market participants now believe that the Indian stock markets now have three distinct pillars — FIIs, retail investors, and DIIs —and that has made the domestic markets more resilient amid global uncertainties and slowdown.
On June 3, when the market sentiment was extremely bullish on the back of exit poll predictions, NSE data shows that retail investors were selling shares – they were net sellers at Rs 8588 crore
The last few years have shown that the Indian retail investor has evolved and is much smarter today. For proof, one only needs to look at last week’s extremely volatile trading sessions.
On June 3, when the market was extremely bullish on the back of exit poll predictions, NSE data shows that retail investors net sold equities worth Rs 8,588 crore, thereby booking profits. Foreign investors, who have been net sellers in the current calendar year, also continued to sell.
Story continues below Advertisement Remove Ad
The next day, when the actual results poured in and the market went into a tailspin, retail investors picked up shares at much cheaper valuations and ended the day as net buyers of shares worth Rs 21,000 crore. FIIs and mutual funds were net sellers, at Rs 19,000 crore, on June 4.
The trend continued on June 5, when retail investors again ended the day as net buyers of equities worth Rs 3,000 crore, in sharp contrast to FII sales of Rs 6,500 crore.
Market experts attribute this trend to the increasing maturity of the Indian retail investor, who is not looking to make quick gains by short-term trading, but is present in the market for fundamentally strong buys with a long-term investment horizon.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, attributes this trend to the “buy on dips, sell on rallies” strategy adopted by retail investors amid heightened market volatility and political uncertainty.
With the markets swinging over 1,000 points, retail investors are increasingly demonstrating maturity and confidence, leveraging better access to information and liquidity to capitalise on market downturns, he says.
Story continues below Advertisement Remove Ad
Similarly, Ajay Bodke, an independent market analyst, underscores the growing retail participation citing the surge in demat accounts, from 40.80 million to 158.05 million since March 2020.
Retail investors, emboldened by past market corrections and swift recoveries, view market dips as lucrative opportunities, a sentiment echoed by average monthly SIP inflows of Rs 20,000 crore, he explains, adding that retail activity has emerged as a strong counterforce against FPI selling.
A large section of market participants now believe that the Indian stock markets now have three distinct pillars — FIIs, retail investors, and DIIs —and that has made the domestic markets more resilient amid global uncertainties and slowdown.
