I’ve been quite vocal on FIIs & how they’re losing to the Indian retail investors since 2022.
2022, the FIIs pulled out record amount of money from our stock market because of the Russia Ukraine War. Despite this, the Indian markets were quite stable. If this huge outflow would have happened in 2010, the market would have easily corrected 30-40%. We’re standing at all time highs now.
Back then, FIIs were big fish & retail were considered small fish. But boy oh boy, things have changed now.
The retail have grown in leaps and bounds. Crores of investors have joined & crores are expected to come.
Now the retail inflow is strong. ₹20,000 crore every month comes from retail into our stock market.
I think, on the 4th June, retail bought ₹1L crores & sold ₹0.8L crores worth of stocks. Net net, retail bought ~₹20,000 crores in a single day. And if I clearly remember, retail section was the biggest buyer of that day’s dip.
Now even if FIIs pull out in record numbers, it doesn’t matters.
If they bring in new money, FIIs are welcome to make money on the India growth story.
I know there are still some who will sing praise for FIIs. Good. But don’t undermine & underestimate the power of retail investors. (Gamestop coughing in corner).
We really don’t depend on FIIs now. Thanks to the growing Indian retail.
