Retail investors emerged as trendsetters in Indian stock market: Experts
On June 5, after the results, retail investors had invested Rs 3,006 crore and equity worth Rs 6,481 crore was sold by FIIs.
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12:56 PM IST
Indian stock markets emerged as a favourite investment destination for retail investors after Covid 19. Now retail investors are the driving force in the market due to making the right decisions at the right time.
They appear far ahead of Foreign Institutional Investors (FIIs) and other large investors.
For instance, there was a big rally in the market on June 3 due to the Exit Polls. According to NSE data, retail investors sold shares worth Rs 8,588 crore, while FIIs and mutual funds invested more than Rs 10,000 crore.
On June 4, the day the results of the 2024 Lok Sabha elections were declared, the Nifty fell 5.9 per cent. During that period, retail investors bought equity worth Rs 21,179 crore.
At the same time, FIIs and mutual funds had sold equity worth Rs 12,511 crore and Rs 6,249 crore respectively.
On June 5, after the results, retail investors had invested Rs 3,006 crore and equity worth Rs 6,481 crore was sold by FIIs. However, mutual funds had invested Rs 2,672 crore.According to experts, "It is important to understand that the major driving force in this bull market, are the Indian retail investors, including HNIs. Big selling by FIIs is getting eclipsed by the aggressive buying of DIIs and retail investors."
"The fact that retail investors bought equity to the tune of Rs 21,179 crore on June 4, the day Nifty tanked 5.9 per cent, indicates the buying power and optimism of the retail investors," they added.
The trend of investing in SIPs is also increasing rapidly in the Indian stock markets. The average monthly SIP figure has reached around Rs 20,000 crore.
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12:56 PM IST