Hi
Sorry Friends. I was little late in posting about FIIs
Here's SEBI figure
Reporting Date---Gross Purchases(Rs Crores) ---Gross Sales(Rs Crores)---
Net Investment (Rs Crores)--- Net Investment US($) million at month exchange rate
19-JUN-2006 --- 2920.30 ---2260.70---
659.50 ---145.20
And NSE figures
FII trading activity on NSE and BSE in the Capital Market segment(In Rs. Crores)
Date--- Buy ---Value--- Sell Value ---
Net Value 19-Jun-2006 ---1051.07 ---1078.80
---(-27.73 )
And our MFs
Transaction Date--- Gross Purchases--- Gross Sales---
Net Purchases / Sales
16.06.06--- 517.62--- 597.25---
-79.63
Well , sebi figures are quite huge and appears to be reporting about block deals or off market transactions which get reported after a week only.
If we take nse figures as having reliable impact on the market then the strong close ( last price was significantly higher than the average closing price) then quite naturally some are interested in keeping the market up. May be off market transactions are known to some and not to ordinary investors.
However immediately one thing becomes noticeable is that FII and MF bot are light in the market. Their volume was very low and this was keeping the volume subdued.
Global Market
China India , Taiwan and NZ closed in green but others managed to stay in red.
On the other hand investors in Europe has shown courage and were green with envy. They cannot hope to beat the gyrations of BSE./nifty.
Dow and nasdaq started out with red now. At the time of writing it Nasdaq was going into green territory. So they are just about maintaining the poise. How it will end today will decide the sentiments in bse/nifty tomorrow. May be todays close was largely aided by recovery in european market.
Well , one question was raised elsewhere that if fed rates are a known factor and moving money costs more that the rate hike, why money will be moved from emerging markets.
Well the answer is not in one factor alone.
Its the overall risk perception, return over a period of time. The cost of moving money is not as great as it is shown. In fact it may not be significant. yet money does not move when market seems to plunge. Smart money moves out well in advance at the slightest hint of trouble. It is also valled hot money. Suppose if they moved out in bulk in April and them in one week in may. Thereafter it is quite subdued.
However, the amount of money moved out is not significant in relation to the invested amount in India.This monkey business will go on for quite some time.
Market today and for last few days has shown some positive signs. But the aftershocks will continue to come. The directions are not yet clear at least to me. I still feel it will trade in the range of 9500 to 10500 for quite some time before resuming its northward march. Even if , it goes down to 8500 level ( seems quite unlikely) that will present the opportunity for long term buy. Fear is the factor by which we do not get into the mode of buying when burnt badly.. So we tend to buy high when we feel assured, positive.
No I am not saying that is is a buy . I say do you know your stocks? First know and asses it and then wait for trend to change. Buy when you are comfortable. What I say will not be applicable at all to penny stocks. Many will move much higher but then the risk factor should be clearly understood.
The stocks you want to buy should have some criteria for trading volume, price band , volatality and indices participation. These should be used to screen them in addition to some of the parameters mentioned on FA.
Let the dust outside settle down and then we should be ready.
Pankaj