FII/DII activity - and what we can make out of that!

Investing Strategies
#1

Let's start capturing FII and DII buy/sell activities on a regular basis, here.

Here's a graphic that is telling!

The foreign investors are busy investing in India (see Table below) and have purchased USD 12.9 billion worth of Indian stocks since the start of the year. Domestic mutual funds have sold USD 3.4 billion in the same timeframe!

2003-2010 FII/DII activity Summary

Period Net foreign Activity (US$ m) Net Local Fund Activity (US$ m) Total (US$ m) Change in BSE-30 TRI in that Period (% USD)
CY 2003 6,628 88 6,716 86.3%
CY 2004 8,669 -253 8,416 23.1%
CY 2005 10,707 3,049 13,756 42.2%
CY 2006 8,106 3,413 11,519 53.3%
CY 2007 17,655 3,222 20,877 68.5%
CY 2008 -11,974 2,501 -9,473 -60.7%
CY 2009 17,458 -1,132 16,326 89.7%
Cumulative 57,249 10,888 68,137 528.1%
August 2010 2,514 -682 1,832 -0.7%
YTD 2010 12,945 -3,402 9,543 3.0%
May 5, 2010 Greek Day -310 4 -306 -1.7%
Source: Equitymaster, Sebi.gov.in

But the point is that the money flows of the Foreign Institutional Investor (FII) will determine where share prices head in the near term. The Indian money is on the sidelines.

#2

I am glad someone pointed this out…markets are scaling new highs without any fundamental changes…most stocks are getting overvalued…with Q2 results round the corner, most companies are likely to beat expectations with a lot of favorable signals, this will probably create yet another spike…

I hope markets take a breather soon enough…

#3

Some more info on the unabated FII fund flows in Sep. Equitymaster makes it easy for us to follow the fundflows on a monthly and daily basis.

Daily FII Activity
DATE PURCHASES
(Rs m)		 SALES
(Rs m)		 NET INV
(Rs m)
Tue, 21 Sep 64,319 31,193 33,126
Wed, 22 Sep 46,303 31,249 15,054
Thu, 23 Sep 30,436 24,609 5,827
Fri, 24 Sep 42,865 29,478 13,387
Mon, 27 Sep 36,696 23,625 13,071
Total 220,619 140,154 80,465
Data pertains to trades conducted by FIIs on and upto the previous trading day.

Monthly FII Investments

MONTHENDED NETINV.
(Rs m)		 MONTH END Rs/US$ NETINV.
(US $m)		 MONTH END INDEX CURRENT VALUE
(Rsm)		 CUMM. INV.
(Rsm)		 CUMM. VALUE
(Rsm)		 %GAIN
(Rsm)		 %GAIN
(US$m)
Jan-2010 4,629 46.18 122 16,358 5,679 4,629 5,679 22.7 3.2
Feb-2010 21,135 46.11 465 16,430 25,817 25,764 31,496 22.2 19.3
Mar-2010 188,336 45.08 4,136 17,590 214,878 214,100 246,374 15.1 16.0
Apr-2010 91,569 44.36 2,065 17,559 104,661 305,669 351,035 14.8 15.0
May-2010 (91,745) 46.37 (1,988) 16,945 (108,662) 213,924 242,373 13.3 12.3
Jun-2010 97,076 46.49 2,096 17,534 111,111 311,000 353,484 13.7 14.0
Jul-2010 176,576 46.25 4,608 18,081 195,989 487,576 549,473 12.7 6.3
Aug-2010 111,853 47.07 2,404 17,971 124,912 599,429 674,385 12.5 7.9
Sep-2010 291,958 44.95 5,600 20,069 291,958 891,387 966,343 8.4 10.2
#4

Here is the FII fund-flow for Oct till Oct 11. Will be interesting to see the quantum of flows on Oct 12 and 13th might have seen the highest flows in the month?

Daily FII Investments

DAY ENDED GROSS PURCHASES
(Rs m)		 GROSS SALES
(Rs m)		 NET INV.
(Rs m)
1 Oct - 2010 45,644 26,003 19,641
4 Oct - 2010 47,502 28,313 19,189
5 Oct - 2010 43,602 33,900 9,702
6 Oct - 2010 52,358 29,504 22,854
7 Oct - 2010 50,982 33,974 17,008
8 Oct - 2010 36,028 27,953 8,075
11 Oct - 2010 35,454 24,342 11,112
#5
Yes. Will be good to see today 13 Oct FII buy/sell data. Interestingly domestic mutual funds continue to be consistent sellers in this market. I found the following data from SEBI website
http://www.sebi.gov.in/Index.jsp?contentDisp=FIITrends
Even more interestingly domestic mutual funds are consistently buying debt!
Trends in Transactions on Stock Exchanges by Mutual Funds
(as on 12-OCT-2010)
Trading Date Debt/Equity Gross Purchases (Rs Crores) Gross Sales (Rs Crores) Net Investment (Rs Crores)
1-Oct-10 Equity 985.8 1003.7 -17.9
Debt 2950.4 1409.8 1540.6
4-Oct-10 Equity 518.4 871 -352.6
Debt 5448.8 2121.9 3326.9
5-Oct-10 Equity 507 831.8 -324.7
Debt 3898.7 817.9 3080.8
6-Oct-10 Equity 976.2 1399.7 -423.5
Debt 4879.2 1503.8 3375.4
7-Oct-10 Equity 438.1 1078.3 -640.2
Debt 4288.3 1416.2 2872.1
8-Oct-10 Equity 354.4 907.8 -553.5
Debt 3211.3 980.7 2230.7
11-Oct-10 Equity 437 697.1 -260.1
Debt 3648.1 1201.5 2446.6
12-Oct-10 Equity 420.7 757.5 -336.8
Debt 1487.4 2485.4 -998.1
Total Equity 4637.6 7546.9 -2909.3
Debt 29812.2 11937.201 17875.0

The above report is compiled on the basis of reports submitted to SEBI by custodians on 12-OCT-2010 and constitutes trades conducted by Mutual Funds.
#6

Hi Arindam,

Thanks for the link and the domestic MF data. Exploring that link I landed up at the daily updated (incl Oct 13th!) FII buy/sell data by SEBI. here goes

(btw, check the archives section for latest data)

Reporting Date Debt/Equity Investment Gross Purchases(Rs Crores) Gross Sales(Rs Crores) Net Investment (Rs Crores) Net Investment US($) million Conversion
Route (1 USD TO INR)*
1-Oct-10 Equity Stock Exchange 10144.5 6140.6 4003.9 891.33 Rs.44.92
Primary market & others 773.3 21.3 752 167.4
Sub-total 10917.8 6162 4755.8 1058.73
Debt Stock Exchange 647.1 826.8 -179.6 -39.99
Primary market & others 0.3 1257.9 -1257.6 -279.97
Sub-total 647.4 2084.6 -1437.2 -319.96
Total 11565.2 8246.6 3318.6 738.77
4-Oct-10 Equity Stock Exchange 4531.5 2595.1 1936.4 433.38 Rs.44.68
Primary market & others 33 5.1 27.9 6.23
Sub-total 4564.4 2600.3 1964.2 439.62
Debt Stock Exchange 860.3 555.9 304.4 68.14
Primary market & others 0 22 -22 -4.92
Sub-total 860.3 577.9 282.4 63.21
Total 5424.7 3178.2 2246.6 502.83
5-Oct-10 Equity Stock Exchange 4266.6 2814.8 1451.8 327.2 Rs.44.37
Primary market & others 483.6 16.5 467.1 105.28
Sub-total 4750.2 2831.3 1918.9 432.48
Debt Stock Exchange 1562 102.6 1459.5 328.93
Primary market & others 0.3 587.2 -586.9 -132.27
Sub-total 1562.4 689.8 872.6 196.66
Total 6312.6 3521.1 2791.5 629.14
6-Oct-10 Equity Stock Exchange 4288.1 3389.1 899 201.02 Rs.44.72
Primary market & others 72.1 0.8 71.3 15.94
Sub-total 4360.2 3390 970.2 216.96
Debt Stock Exchange 334.6 430.1 -95.5 -21.36
Primary market & others 0 33.2 -33.2 -7.43
Sub-total 334.6 463.3 -128.8 -28.79
Total 4694.8 3853.3 841.4 188.17
7-Oct-10 Equity Stock Exchange 4868.5 2950.4 1918.1 432.97 Rs.44.3
Primary market & others 367.3 0 367.3 82.92
Sub-total 5235.8 2950.4 2285.4 515.89
Debt Stock Exchange 835.1 143.6 691.5 156.1
Primary market & others 738.4 0 738.4 166.68
Sub-total 1573.5 143.6 1429.9 322.78
Total 6809.3 3094 3715.3 838.67
8-Oct-10 Equity Stock Exchange 4658.6 3391 1267.6 286.27 Rs.44.28
Primary market & others 439.6 6.4 433.2 97.83
Sub-total 5098.2 3397.4 1700.8 384.09
Debt Stock Exchange 1108.6 517.8 590.8 133.42
Primary market & others 7.8 30.5 -22.7 -5.12
Sub-total 1116.4 548.3 568.1 128.29
Total 6214.6 3945.7 2268.9 512.38
11-Oct-10 Equity Stock Exchange 3443.2 2790.1 653.1 147.16 Rs.44.38
Primary market & others 159.6 5.2 154.4 34.79
Sub-total 3602.8 2795.3 807.5 181.95
Debt Stock Exchange 481.4 302.3 179.1 40.36
Primary market & others 88 75.5 12.5 2.82
Sub-total 569.4 377.8 191.6 43.18
Total 4172.2 3173.1 999.1 225.13
12-Oct-10 Equity Stock Exchange 3482.2 2432.8 1049.5 236.9 Rs.44.3
Primary market & others 63.1 1.4 61.7 13.93
Sub-total 3545.4 2434.2 1111.2 250.83
Debt Stock Exchange 279.2 407.8 -128.5 -29.02
Primary market & others 157.8 50.9 106.9 24.13
Sub-total 437 458.7 -21.6 -4.88
Total 3982.4 2892.9 1089.6 245.95
13-Oct-10 Equity Stock Exchange 2964.4 2390.8 573.6 128.2 Rs.44.74
Primary market & others 128.1 1.6 126.5 28.28
Sub-total 3092.5 2392.4 700.1 156.48
Debt Stock Exchange 313.3 249.9 63.4 14.16
Primary market & others 0 287.1 -287.1 -64.16
Sub-total 313.3 537 -223.7 -50
Total 3405.8 2929.4 476.4 106.48
Total for October Equity Stock 42647.6 28894.7 13753 3084.43
Exchange
Primary market & others 2519.7 58.3 2461.4 552.6
Sub-total 45167.3 28953.3 16214.1 3637.03
Debt Stock 6421.6 3536.8 2885.1 650.74
Exchange
Primary market & others 992.6 2344.3 -1351.7 -300.24
Sub-total 7414.3 5881 1533.3 350.49
Total 52581.6 34834.3 17747.4 3987.52
Total for 2010 Equity Stock 540136.38 463848.59 76287.8 16719.4
Exchange
Primary market & others 26275.9 1989.6 24286.4 5291.3
Sub-total 566412.31 465838.09 100574.2 22010.6
Debt Stock 140884.09 91047.9 49836.2 10855.2
Exchange
Primary market & others 24273.2 25989.4 -1716.2 -367.6
Sub-total 165157.09 117037.2 48120 10487.7
Total 731569.4 582875.3 148694.2 32498.3
Cumulative total since Equity 4043719.5 3629308 414412.38 94622.1
November 1992 till Debt 412337.59 331958.91 80379 17948.9
13-Oct-10 Total 4456057 3961267 494791.4 112571
#7

If we look at this data, FIIs made a net purchase of only ~Rs. 700 Cr today on 13th Oct. Today’s is the lowest net purchase figure in Oct 2010. And yet, the markets have risen by almost 500 points today!

Does this mean domestic mutual funds are finally getting into the act??

We will know for sure from tomorrows SEBI data.

#8

The trends remain the same. Domestic Mutual funds remain consistent sellers of equity and buyers of debt!

Domestic MF buy/sell
13-Oct-10 Equity 749.9 1102.1 -352.1
Debt 2060.8 1490.3 570.5
14-Oct-10 Equity 583.1 982.5 -399.4
Debt 2565.5 1319.8 1245.7
15-Oct-10 Equity 343.7 1428.7 -1085
Debt 1501.5 3006.2 -1504.7
Total for October Equity 6314.3 11060.2 -4745.8
Debt 35940 17753.5 18186.5

#9

Hi Donald,

I found out that the SEBI data is based on previous days transactions. The custodians submit the FII transaction data of 13 Oct to SEBI a day later on the 14th, but SEBI for some strange reason tags the data as of the day of submission.

So effectively what you see as 14th Oct data is for 13th Oct. This explains the 500 points rise on 13th -as FIIS bought net Rs. 3100 crores that day (not 700 Cr which pertained to Oct 12th). Teh equitymaster table below makes it clear.

Daily FII buy/sell
DAY ENDED GROSS PURCHASES GROSS SALES NET INV.
(Rs m) (Rs m) (Rs m)
1-Oct-10 45,644 26,003 19,641
4-Oct-10 47,502 28,313 19,189
5-Oct-10 43,602 33,900 9,702
6-Oct-10 52,358 29,504 22,854
7-Oct-10 50,982 33,974 17,008
8-Oct-10 36,028 27,953 8,075
11-Oct-10 35,454 24,342 11,112
12-Oct-10 30,925 23,924 7,001
13-Oct-10 67,186 36,182 31,004
14-Oct-10 54,921 25,977 28,944
15-Oct-10 29,220 22,680 6,540
#10

Which of the below two links correctly shows FII investment in cash market.

https://www.nse-india.com/products/content/equities/equities/fii_dii_market_today.htm
or
https://www.fpi.nsdl.co.in/web/Reports/Latest.aspx
https://www.cdslindia.com/publications/FIIDailyData.aspx

Need expert opinion as its quiet confusing.

Regards,
Saurabh

#11

You could also check this.

https://www.moneycontrol.com/stocks/marketstats/activity.php?flag=FII

#12

Hi Chaitanya,

Not sure what data is Moneycontrol picking up. But it is not matching with https://www.fpi.nsdl.co.in/web/Reports/Monthly.aspx

Regards,
Saurabh

#13

Has FII selling exhausted?

image
image720Ă—1600 130 KB

2 Likes
#14

Perhaps.

My big question is where exactly in the world are these smart money investors going to get returns that beat India’s in the near to medium term? To say that China has issues (tech, mortgage boycotts, inane zero Covid policies) would be an understatement. The US and EU region are not doing so well. Japan has its share of struggles too.

The first mistake that these FIIs make is bucketing all emerging markets (not including China) together. So whether it’s India, Brazil or the Philippines, a slight crisis in the world, or a taper tantrum makes them want to dump all their EM assets and “fly to safety.”

Their plan was, as I understand it, was to sell â‚ą assets, and park their money in T-bills or something similar. Then when the â‚ą depreciates a good 10-20%, they would come back in and make big purchases at a huge discount.

I firmly believe that this expected depreciation will not materialize this time around. India is the only major economy in the world that is a bright spot right now. The currency has not depreciated as much as it has in the past during periods of global volatility, and domestic investors have acted as a huge stabilizing force in the equity markets.

So let’s see what FIIs do next, I suppose.

4 Likes
#15

3 Sectors that may attract FII’s during next 2-3 years according to Marcellus.

1 Like
#16
1 Like
#17
3 Likes
#18

Hi all,

If we want to know the FII/DII allocation trend for a particular stock, how frequently can we get that data?
Means, do we get that data only once per quarter or, is their any way we can know it on a monthly basis?