WHY FIIs are continuosly selling????

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by w4wealth, Feb 16, 2016.

  1. w4wealth

    w4wealth Well-Known Member

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    Whole world says india is the bright spot and growth engine.India will bcom one of the largest economies in world.India has got a strong leadership, good governance , demographics, etc.

    If these are true ,India is a compelling buy then why FII are selling continuously.Friends share your thoughts. @Meenakshi Razdan
     
  2. BombayBoy

    BombayBoy Well-Known Member

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    risk aversion

    India wants to know!

    [​IMG]
     
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  3. kharb

    kharb Well-Known Member

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    There are atleast four type of FII.Long only like pension funds etc,Hot ETF,Sovereign funds of commodity producers and Deshi FII( Indian money stocked out side .....).Hot ETF are selling due to reduced confidence in equity around the globe and their investers redemption back home.More over these ETF know that Sovereign funds of commodity may have to sell to fund their national budgets back home ,so they are smart and has done it ahead of them.They also know Indian balloon named Modi has bursted .Sovereign funds of commodity funds are selling to meet finincial gap in budget back at home.Deshi FII has stopped investing and may be sending money back in theit safe heavens as they know that A Big Balloon named Modi has bursted without performance as Jim Roger rightly predicted one year back ,when he said Modi is all talk ,no work.Please don't treat this as political post,instead provide alternate reasoning.Modi Andh Bhakt are also just busy in taking (dry) sides without pumping any money in stock market to show their confidence in his leadership.I am afraid that small investers may not renew their SIP in future and DII support may also reverse in next three months. So Modi govt should do something highly positive to stop this SUNAMI otherwise along with small investers Modi govt will also perish.Govt also needs to pass on crude benefit to boost economy. Not passing crude benefit is biggest foolishness of Govt as it has stopped natural Global QE to Indian Economy, when all major economies are busy with their QE.Disclosure- I had drumed support and lined up to vote for Modi in last Loksabha polls in high hope and also invested upto last penny in that hope . But now I think ,I should have taken Jim Roger seriously.
     
    Last edited: Feb 17, 2016
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  4. w4wealth

    w4wealth Well-Known Member

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    @kharb ji what i noticed in last some months is that FII are not buying anything only selling going on. every day they ar net sellers.r
    as you mentioned redemption presure is one thing that leads to selling. Desi FII are also selling which i dont understand. do fii have found any better investent other than ndian equity??
     
  5. darth

    darth Active Member

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    Their monies, their wish!!!!!
     
  6. w4wealth

    w4wealth Well-Known Member

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    my money my wish.:)
     
  7. San8422

    San8422 Active Member

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    Congress is not letting the Parliament function. So bills like GST are not getting passed. Wrong to blame Modiji for this failure. NPA issue which has caused fall in banking and infrastructure also due to Congress.

    Modiji is trying his best. He has a team of good ministers like Nitin Gadkari (turnaround in road sector), Suresh Prabhu (seperate agency to award contracts, quick response through twitter), Dharmendra Pradhan (stopped gold plating of expenditure, renegotiated gas deal with Qatar), Piyush Goyal (UDAY scheme, improvement in coal India).

    Modijis foreign policy achievements: -

    1. Deepened friendship with Japan. This has led to investments, cheap loans and may lead to technological transfer. Also till now we were alone and had to face China-Pakistan. Now we have Japan on our side.
    2. Landmark India Bangladesh boundary agreement.
    3. 21st June declared as yoga day. May help in spreading culture.
    4. Cross border firing by Pakistan given a very strong reply.

    However there are under performing ministers in Modijis ministry like: -
    1. Arun Jaitley
    2. Smriti Irani

    Modiji must remove the under performers (I pray to God that Raghuram Rajan becomes FM after retiring as RBI Governor in March 2017). Also he must reduce foreign trips and silence those sadhus and sadvis from making provocative statements (he seems to have done the latter).

    Any way Modiji is much better than RaGa and MMS. He is our only hope.
     
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  8. prashant

    prashant Active Member

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    Let Jim rogers go to Brazil,china Russia where growth will be 3% and leave the fastest growing economy in the world .

    Make in India - 251 Rs smartphone to be revealed today . Now lets blame Modi for 251 Rs smart phone and make in India . Lets blame Modi for encouraging cleaning of banking systems mess .

    Thanks,
    Prashant
     
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  9. darth

    darth Active Member

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    Do participate in the poll i just released on 251.

    And yes let all who prefer Jim Rogers views follow him too... Exit Indian stocks like he did.

    As if we really care or miss that fella
     
  10. kharb

    kharb Well-Known Member

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    Stock market trend is reflection of future Economic growth status of a country.I may be wrong ,but I know ,market is always right and much more efficient than what we think.Then why stock market is not acknowledging all that great things what you saying.I believe market more than view of any individual including you and me.If stock market take reversal to acknowldge good work of Modi what you are trying to project and goes up to make new high,no body stops me from changing my view to be positive on Modi.But presently stock market conditions forces me to my present negative view on Modi..
     
  11. prashant

    prashant Active Member

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    San8422,
    I absolutely agree with you .
    During UPA regime India lost lakhs of crore rupees in coal scam and BJP brought in 2+ lakh crore rupees in to the system with transparent auction . Yes 2+ lakh crore rupees .

    Now it will take some time to show the effects of cleaning lot of systems and increased revenue .
    At least we should be happy that intentions of the government is very clear, to clean the rotten UPA systems .

    Thanks,
    Prashant
     
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  12. prashant

    prashant Active Member

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    Dear Kharbji,
    market already acknowledge future economic growth by touching 30k very much in advance . But now market realized it takes some time to see the real change . Its a matter of couple of quarters when India Inc will start posting better results and euphoria will start again .

    Lets hope this government will not fail us. I can see at-least lot of good things are happening around us .

    If this goveremnt fails us, we are open for a dark era of mentally retarded 50 year young PM, or chara khavu PM or cyclevadi PM or even amma pm or did pm ... if nothing then again a servant PM whose priority will be to take orders.

    So many are already in queue to take us few more decades back .
    Lets hope for best .

    Best regards,
    Prashant
     
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  13. kharb

    kharb Well-Known Member

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    It is insult to 1.3 billion people,if you think Modi is the only option or what you mentioned are only alternates,although I am worried on non performance of Modi but never wished Modi to fail as indicated many time.
     
  14. prashant

    prashant Active Member

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    Dear Kharbji,
    I agree with you, only Modi should not be the option, its insult to the 1.3 billion peopels .

    But we have already insulted our-self numerous times by choosing corrupt peoples (even a non choosen, order taking PM ) . We have already given 5 years to this government, let us not say Modi is not capable enough to do the things .

    I already mentioned alternatives to Modi and none of them even comparable, so lets give enough time to perform Modi .

    I too agree on failures of Modi towards GST, unnecessary hike to sarkari babu's . But then he is not a super man and lot of good things are happening which never happened previously .

    Thanks & Regards,
    Prashant
     
  15. w4wealth

    w4wealth Well-Known Member

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    what i think is modiji is trying all ways for the good of the country and its prosperity. the proof of this is that economy growing at 7% better than 5% in last govt period.
    All systems are so messed up that it will take much more time to correct it. govt is aiming for 9-10% growth. our govt is not trying to boost growth thru over lnterference measures. govt is trying conventional ways to boost growth that in best possible and simple way.
    we definitely growing slow but moving in the right direction. so patience is the key. slow and steady wins the race.
    use this volatile times to add fundamentaly good stocks.:)
     
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  16. darth

    darth Active Member

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    Another classic move from the smart Modi Govt

    India to auction atleast three gold mines in 2016, opening up the sector to Private firms for the first time ever. Ofcourse a certain class of politicians will keep barking.
     
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  17. bholu

    bholu Active Member

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    This was a such good and intelligent question. Well done w4wealth. Why the persistent selling ahead of Union Budget ? The markets do know something which we do not ? Is it the long term capital gains returning ? is it because the budget session in danger of washout ? Is it because the banks have piled high NPAs which are gone ? Is it because of feared global slowdown especially in China and oil dependent economies ? Keep the discussion going and how can you spot the factors ahead of potential damage ?
     
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  18. w4wealth

    w4wealth Well-Known Member

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    i think it may be bcoz lower confidence in govt.
    i came across a article saying the cash holding of the global fund managing bodis are at highest levels in 15 years. they hold 5.5% cash in relation to portfolio. means they have been sellers for some time. In india FII are also selling . below chart will help u understand better.
    [​IMG]
     
    Last edited: Feb 19, 2016
  19. w4wealth

    w4wealth Well-Known Member

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    @kharb ji Modiji has not failed in all aspects. he won many . he has also not given up. so it is premature to say modiji failed.
    As @prashant ji said lets give some time to modiji.:)
    madhu kela , Cheif investment strategist , reliance capital opined that MODI ji becoming PM is the best thing happened to India in last 60 years. i also share his view. :)
    The best thing about Modiji is that he is extremely practical and he thinks like a businessman for the country.
     
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  20. San8422

    San8422 Active Member

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    That is the reason why Modiji increased the taxes on petrol. He could have passed on all the benefit to consumer and that would have led to a bull run in short term. However Modiji thinks about the long term.

    The increase in taxes on petrol/diesel has led to increased revenues which has led to increased infrastructural spending especially road and railways. Also ministers like Suresh Prabhu are practical. They are focusing on completing projects which are 80-90% complete instead of announcing new projects (like railway lines). Also corruption is reduced and efficiency has improved enormously especially in railways due to various reforms. All this has led to fasters project completions leading to further rise in revenues and economic development of the region.

    https://indianexpress.com/article/i...ys-complete-a-project-one-week-before-target/

    Thus Modijis decision of avoiding natural QE through cheap petrol/diesel is very good. Crude prices will soon rise but the infrastructure built (using taxes on petrol/diesel) will benefit the future generations while high petrol/diesel prices may benefit the environment.

    Let us pay some more money for petrol and LPG so that our future generations will have better schools, railways, roads, job opportunity and swatch bharat.

    I am proud of having a visionary like Narendra Modi as Prime Minister of my country. If he remain PM for at least 20 years, India will become as developed as Germany/Japan.
     
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