FII and DII Trading activity – July 2019

FII and DII Trading activity – July 2019


As we have already seen, the Global Crisis has not been corrected. The US-China Trade war is also escalating. The US Fed reserve interest rate cut has also been by 25 basis points, which is for the first time in the last ten years.

It was only in the year of 2008, that it made such an interest rate cut by the Fed. The current rate cut by the Fed reserve is said to be to protect from the Slowing growth of Economy.

The Problem in the Automotive Sector has not been fixed yet. In the Last quarter, the Earnings from Auto companies were fell down drastically. In the month of July as per FII / DII Trading activity in the Indian Stock Market, the Foreign Institutional Investors had sold a large number of Stocks.

The reason for the FII net selling is mainly due to the Taxation for the FPI in the Indian Equity market. However Domestic Institutional Investors bought a substantial in the month of July 2019. There are 23 Trading days for the month of July, where the FII had sold shares almost for all trading days, except on 1st July which is before Budget India announcement 2019.

The Gross Purchase of Rs. 92,246 Crore and the Gross Sales of Rs.1,09116 Crore by the Foreign Investors - So, the Net sales of Rs. 16,870 Crore for the FII in July 2019. The DII had a Gross purchase of Rs. 92,650 Crore and the gross sales of Rs. 72,255 Crore - Net Purchase of Rs. 20,394 Crore.

The Domestic Institutional Investors had bought shares of 22 days out of 23 trading days. On 1st July, they were the Net sellers of worth Rs. 51 Crore. After the Budget announcement, the FII had sold largely and DII had bought at high in the Indian Stock Market.

The Indian Equity Market may recover if there is a shift in Taxation, Policies on Auto Sector and for Other Industry. Long term investors can make small investments when the prices of Fundamental based stocks are corrected. Portfolio Diversification and Asset allocation is essential in the present Era.

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