How to know about FII Buying in Stocks?

When it comes to the stock market, there are different factors that come into play. FII is one of the major factors in the stock market as they tend to directly impact the market. FII stands for Foreign Institutional Investor which means an investment fund that is registered outside of the nation. It’s basically a large investor who has his business operations outside of the nation where the investment is being made. The major motive behind FII is to invest in the securities of the nation.

When it comes to the stock market, FII tends to drive the market to a different level. In present, the percentage of holding for FII in the stock market is already in the majority mark and is well set to grow. As a result, an FII buying of stocks can drive the market extensively whilst the FII taking out their investment may induce a crash in the market. It’s crucial that you know about the FII buying in stocks as that is when the market is on the drive and you can be part of it. If you want to make the most of your opportunity then you should enter the market during the time of FII buying in stocks.

So how do you find about the FII buying in stocks? Here’s how you can. Read along.

How to find FII buying in Stocks?

  1. FII Trading Activity: National Stock Exchange (NSE) publishes the FII trading activity on a daily basis. Normally, if you are a common stock market investor then you may not find much to conclude from it. But when you map it accordingly, you can see the FII trading and get to know the shares that are being bought and sold by the FII. That way you can get strong signals about the market. So if you’re looking to find stocks to invest into, check into the FII trading activity and find the stocks that are worth entering. A pro tip is that FII normally looks to invest in the frontline stocks that are part of the NIFTY.  
  2. Volume and Delivery Percentage: Volume and delivery of the shares showcase quite a bigger picture of the stock market. Any sudden or a sharp movement in the volume and the delivery of the shares is oftentimes driven by the FII buying into stocks. FII’s tend to go for the stocks of the big companies who are market leaders in their segment. Whenever FII tends to invest in these stocks, then the stocks see a surge in volume and delivery.
  3. Sectors or Themes: When you look at the FII’s and their interest in investing in the market, there are quite a few sectors that they normally go for. The choices vary accordingly to the preference of the FII’s. But the common theme is that they opt for companies that are leaders in their sector. They also hold close affinity towards the sectors that have rapid growth scope in the long run. When you look at the trend in India, currently urban consumption, pharma, IT and more are one of the preferred choices for FII presently.
  4. Quarterly Reports: All the companies publish their quarterly reports and it is available on the websites to read for. The quarterly reports allow you to have a look at the performance of the company. There you can observe if FII has invested in them or have offloaded their holding. If the FII holding is being offloaded then you should also look towards that company with caution.
  5. News: News has always been one of the best sources for information. After all the motive behind the news is to provide information. There’s always something you can find from the news. Track the news and look for the FII related information. With the modern-day tech at the peak of its era, you can simply use Google to find news about any FII. That way even if you have missed any information you can simply find them and conduct your research on it. From there you can find about the FII buying in stocks in the market.

FII is a major marker for the stock market and their entry or exit certainly creates quite an impact on the market. The best thing for an investor is to enter the market right at the time of the FII buying the stocks as the price will then surge and your value will increase substantially. Try to look for the information regarding the FII investing in the stocks and you’ll stand ahead of the curve. However, don’t always depend on the rally itself as an investment should be backed by clear-headed research. Conduct your fundamental research and look for the plus points when opting for the stock market investment.

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