FII vs DII activity in

FII is constant buyer of stocks in March 2016 See chart

Date: FII & DII (Crore)
30/03/16: 1442 & -396
29/03/16: 513.45 & -556.69
28/03/16: 2042.94 & -2494.44
23/03/16: 976.91 & -1022.58
22/03/16: 1095.44 & -930.37
21/03/16: 1396.33 & -618.77
18/03/16: 1712.62 & -403.37
17/03/16: 744.49 & -168.38
16/03/16: 625.58 & -680.16
15/03/16: -54.01 & -302.31
14/03/16: 1035.63 & -805.34
11/03/16: 378.36 & -432.81
10/03/16: 1063.11 & -598.03
09/03/16: 462.86 & -823.56
08/03/16: 775.07 & -1341.51
04/03/16: 671.57 & -533.1
03/03/16: 911.98 & -464.75
02/03/16: 1437.5 & -593.67
01/03/16: 2912.59 & -834.59
TOTAL : 18188.97 & -13047.74

 

Strange situation fiis are constantly buying and diis are constantly selling. How is that happened?

 

FII are coming back. stage set for other bull run. 3 billion dollars invested in march alone.

why Dii are selling??/ any idea.

 

It generally happens.All DII keep some cash -liquid -debt component any where between 5 to 35% depending upon their profile. When FII sells ,market goes down and stocks become attractive. At this point DII invest.When FII stop selling or start fresh buying,DII need to sell to raise cash to their normal level When DII cash level is OK and FII continues to buy , big rally start added by FII buy and fresh inflow in DII forced them also to become buyer as they would not increase their cash position from a certain level ,otherwise they may under perform from their benchmark.

 

if their is no redemption pressure why DII sell stocks bought at attractive price.?

 

As already explained that DII keep some cash,liquid,debt component in their portfolio in addition to equity. As Market has gone down to very low level,so they used that opportunity and used their cash for trading.Now after market has stablised and given them trading return in short period, they need to sell to raise cash again to grab any opportunities like this or redeemition in future.I had already explained this in my earlier

 

ok kharb so keeping cash is statutory requirement.
i am hoping dii will soon turn into buyers.

 

No ,keeping cash is not statury requirement.It is part of strategy to keep some cash to buy at sudden fall or to meet out any sudden redemption pressure specialy when market is down.Even individual investers should also keep around 5 to 10% cash in portfolio,to buy at sharp correction and cash it out when market normalise.Although I never did this,but now on I shall also keep 5 to 10% cash in my portfolio to benefit from sharp corrections.