It’s no secret that the treasures of the Indian stock market are generally propelled by interest from FIIs who invest in groups and are quick to rush for the exit at even a minor trigger.
Domestic investors, on the contrary, pour money into the markets at a time when the interest of their foreign counterparts ebbs dramatically.
This means, domestic investors have been investing in a falling market, taking advantage of a drop in valuations and FIIs continue to dump stocks.
Does this strategy help domestic investors?
On several occasions, this approach has paid rich dividends for them. But in times when the Sensex has stayed positive while FIIs were selling continuously, domestic investors have held out well with strong purchases emerging at lower levels.
Though the pace of momentum may slow down during such periods, the market continues its positive bias in the near term. So, next time you witness a phase of FII outflow and DII inflow, you know what’s coming!
To navigate your way through this tug and war, approach an experienced wealth management firm like --- and build a well-diversified, profitable portfolio.