*Retail investors may have missed the bus * **
** ** ** ** * ------------------------------ ** Retail investors do not appear to have taken cues from the FII buying from the second-half of March. * ------------------------------ *Vidya Bala * Retail investors who missed the bus to Sensex 14000 would have been cursing their bad luck on “Green Monday”. Individual investors who directly invest in equities may not have made the best of the 75 per cent rally witnessed by the Sensex since its March 9 low. The BSE category-wise turnover data suggests that retail investors have consistently been in sell mode since the March 9 lows. Net sellers The turnover in the clients category from March 9 till May 15 suggests that retail investors have been net sellers of about Rs 6,600 crore in the BSE alone over this period. This category of investors have been net buyers on only nine of the 42 trading sessions since March 9, steadily offloading stocks, perhaps having lost the conviction to buy. In contrast, FIIs have been net buyers on 31 trading sessions. It is to be noted that the category-wise turnover provided by the BSE excludes turnover at the NSE for the retail category, while the data on foreign and domestic institutions includes turnover of both the stock exchanges. The data has, therefore, been used to analyse the trend in each segment; no comparison across categories can be made. Losing conviction Interestingly, retail investors easily spotted a buying opportunity during the October 27 low when the market touched 8510. They bought more than what they sold, in the months of October and November. However, the optimism did not last long, as markets continued to fall. Thereafter, buying activity came in short spurts followed quickly by net selling. Retail investors do not appear to have taken cues from the FII buying from the second-half of March. The results season and the fractured verdict expected in the polls could have played a part in escalating their scepticism. DIIs in buy mode Retail investors may however take comfort from the fact that their mutual fund investments, if any, could have participated in the rally to some extent. Domestic institutional investors have been net buyers between the March low and now, although they did resort to selling/profit booking in April. http://www.thehindubusinessline.com/2009/05/19/stories/2009051951761000.htm-- To be a winner, all you need to give is all you have. ekamber --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
