FII and DII Trading activity – January 2020

FII and DII Trading activity – January 2020


The Chinese Stock Market - Shanghai Composite Index fell more than 7 Percent in the first trading day, after the Lunar Festival holidays. Due to the Corona Virus, the Crude prices were also fell down below $USD 50 per barrel in the beginning of this week.

India's Budget for FY 2020-21 was announced last Saturday (01-02-2020). The Budget for India set out long term goals and appropriate Funding to boost the Economy.  However there is no change in the LTCG (Long term capital gains) and introduced a New Tax Regime (Optional) for the Personal Income Tax. The Dividend Distribution Tax Changes and other Taxation is not favorable to the Indian Stock Market on that Budget day.

Importantly, on the Budget India 2020 day - the Foreign institutional investors had sold shares worth Rs. 2000 Crore and on the other side, the Domestic institutional investors bought shares of worth Rs. 37 Crore in the Indian Equity Market.

Unexpectedly, the Post Budget market were raised up due to the Domestic Investors. They had bought shares of worth Rs. 1,286 Crore, but the FII had sold shares of Rs. 1200 Crore.

Over the last 7 trading days till the Budget day, the FII had sold shares of worth Rs. 10,350 Crore and they are the Net Sellers for the month of January 2020 with an amount of Rs. 5,360 Crore. Where the Domestic investors bought shares of worth Rs. 1,073 Crore in the month of January 2020 and announced them as a Net Buyers.

The number of trading days in January 2020 was totally 23 days for the Indian Stock Market. Of these days, the FII had a net purchase of only for the 8 Trading days. On the other part, the DII had went as a Net Buyer for the 11 days and sold shares for the 12 days in the month of January.

On 31st January 2020, which is one day before the Budget - the Foreign investors had the Net Sellers of worth Rs. 4,179 Crore, but the Domestic investors had bought shares of Rs. 3,816 Crore in the said day.

Currently, the Indian Stock market is boosted by the Domestic players - where the FII had sold their shares till 3rd February 2020. The Market will move in the upcoming weeks with the RBI Monetary Policy and the Earnings results of Mid and Small Caps. Economic factors around the world are still lacking.

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