Retail investors outplay FIIs, MFs on 4 June
FPI inflows of ₹6,617.32 crore and mutual fund purchases of ₹3,072.85 crore, NSE data reveals. However, retail investors net sold shares worth ₹8,587.5 crore on 3 June instead of their usual practice of buying on the rise. The next day, when the actual counting showed the BJP unable to secure a simple majority, the market tanked almost 6% to 21,884.50, and FPIs and MFs net sold shares worth a combined ₹18,760 crore.
Again, retail net purchased shares worth ₹21,178.94 crore , the data shows, staying true to the adage of buying on a low. “Direct retail tends to enter last and exit first, so this is a sea change to see them execute a smart strategy , outplaying MFs and FPIs," said S.K. Joshi , executive director of Khambatta Securities.
Agreed Alok Churiwala, managing director, Churiwala Securities, who said that retail investors now included “a smarter and younger lot who are more adept at investing than the typical retail investor of the previous decade and earlier". On smaller rival BSE, too, direct retail purchased a net ₹1,656.53 crore on Tuesday and sold ₹2,245 crore over the next three days. It is well known that markets recovered from Wednesday as it became clear that Narendra Modi would lead the national democratic alliance (NDA), which had won 290 seats, to form the new coalition government at the centre.
The Nifty has rallied 6.4% to a new closing high of 23,290.5 from Tuesday through Friday, potentially giving stellar returns to retail investors. The category-wise turnover for 5-7 June was unavailable on NSE at the time of writing, but analysts believe that retail investors could be sitting on significant profits if the shares they purchased multiplied by value. Churiwala said that data release by the exchanges
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