Home > News Analysis > FIIs buy $3.15 billion in 10 days!

FIIs buy $3.15 billion in 10 days!

Wednesday, October 10, 2007 Leave a comment Go to comments

If you thought that $5 billion in a year was good for Indian markets, consider this- FIIs have bought stuff worth $3.15 billion in just 10 days! No wonder the markets are sky rocketing due to this surge in liquidity. As long as the global conditions remain stable, expect some more dollar inflows. And just in case Fed goes for another rate cut, floodgates might open. So do not underestimate the strength of these strong moves.

Also remember that currently less than 5% of household savings are invested into equities. I am wondering as to what might happen if that percentage increases to say 10% over the next couple of years. Although a lot of domestic money is finding its way into the equity markets through Unit Linked Insurance Plans offered by the likes of ICICI and LIC. (Although thats a bad and inefficient way to invest in the markets)

Its an irony that foreigners are more bullish on India than the Indians themselves!

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  1. sagecapital
    Friday, October 12, 2007 at 6:54 pm

    Rey- Let a person be where he/she feels comfortable. Those who don’t understand “loss” are better off at places where they are told that investments do not incur losses!Such people are into this business for all the wrong reasons.
    Like I say to my clients many times- You are in this market to make money and not to “feel high”! If someone wants to feel high, do that on a race track.
    Many people enter markets thinking coz they are bored out of their jobs! I feel good trading is more “boring” than anything else.Its so mechanical.

  2. ReyMax
    Thursday, October 11, 2007 at 11:44 pm

    reading what hart has to say arouses in me deep suspicion that hart is training to enlist as “expert” on CNBC. dont do it hart. dont join CNBC, stay with this blog.

  3. sagecapital
    Thursday, October 11, 2007 at 11:46 am

    I had asked my clients to get out between 2100-2150 range. Now this is just a “trading range” bet. Buy at 1700 and sell at 2050-2100.
    Some of my clients have made decent money trading these ranges.
    Didn’t the trend tell you that results were not going to be spectacular?

  4. ashish ji
    Thursday, October 11, 2007 at 10:35 am


  5. sagecapital
    Thursday, October 11, 2007 at 9:49 am

    Define “cheap” for us.How do you calculate whether a scrip is cheap or pricey?

  6. hart
    Thursday, October 11, 2007 at 9:46 am

    Market at high or low, you can always find some good picks at cheaper rates. There are un-picked euro centric gems in IT who are still unflocked by investors. Certain telecom scripts are all set to get DoT blessing which will shoot the prices. Even at banking segment you have stocks available at very good bet. FMCG has few which can do a “Bingo” to your portfolio!

    I’d rather suggest you to spend time identifying those scripts than worrying entire day over when market will go down.

  7. sagecapital
    Thursday, October 11, 2007 at 8:24 am

    Even I was whipsawed! Had to re enter.

  8. Thursday, October 11, 2007 at 7:22 am

    You are right sage, but higher volatility also means…small indian retail investors were whipsawed 😉

  9. sagecapital
    Wednesday, October 10, 2007 at 11:41 pm

    JK-U seem to be afraid thats why you are out!At the same time you are asking us “not to be afraid”.
    I am fearful but still riding the trend 🙂
    Correction is due- Important to ask is if it is from 5500 to 5000 or from 6000 to 5500 or from 6500 to 6000?
    I don’t know in advance so I am left with no choice but to ride the trend.Of course higher volatility means less number of positions.

  10. jk
    Wednesday, October 10, 2007 at 11:37 pm

    disclosure : i am bearish on short term
    bullish on long term
    have no exposure to equity as of now

  11. jk
    Wednesday, October 10, 2007 at 11:36 pm

    i dont know the data
    i dont know abt the world
    what i know is a correction is due …
    may be tomrrow
    day after
    or some time later
    things cant go up in straight line
    whatever goes up superfast has to come down superrr fast

    dont be afraid if u see 1500 points of sensex gone in just 2 working days

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