Retail buying on 4 June pushes F25 buys to levels seen in whole of F24
₹21,178.94 crore on 4 June when the Nifty tanked 8.5% to 21884.50 points from the previous session after the BJP failed to secure a majority on its own – winning 240 seats against an anticipated 330 – in the Lok Sabha polls. The purchase on that single day accounts for almost 46% of the total purchase of ₹46,383.8 crore in the fiscal year through 14 June, as per NSE data.
In comparison, their net purchase stood at ₹47,180 crore in FY24 and ₹49,206 crore in FY23. FIIs net sold shares worth ₹12,511.07 crore and mutual funds offloaded equities worth ₹6,249.12 crore on 4 June.
The Nifty has since then rallied 7.6% to Monday's closing of a record high 23557.9 points. NSE enjoys a 93% market share in the capital market segment , clocking an average daily turnover of ₹1.18 trillion against BSE's ₹8,494 crore average daily turnover so far this fiscal year.
Market mavens see retail interest as a behavioural shift from being 'last in-first out' prior to the pandemic to 'buying the dip and selling the rally," post the event. They caveat though that the post-pandemic retail entrant hasn't seen a 20% plus drawdown and should be cautious.
"It seems they have been buying the dips and selling the rallies , against typically being last in-first out prior to the pandemic," said Siddhartha Khemka , head of retail research at Motilal Oswal Financial Services. Khemka adds that in the absence of a serious market correction post the March 2020 Pandemic, when markets tanked 38% in little over a month to a low of 7511.10 on 24 March , there haven't been any serious long-lasting market corrections and warns that this should act as a "leash " on "greed." Ashish Nanda, president & head - digital business, Kotak Securities, agreed, but warned
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