Is it right to blame FII’s for pulling out their money? Well the answer is no because when the market does well then it’s the FII’s who buy and when they buy an euphoria is created, So does that mean that their buying and selling determines the market sentiment? Well it will not be wrong to say that because when FII’s buy lot of foreign inflows start coming into India, thus rupee becomes stronger, and people start talking of cheap valuations and start buying.
The problem with common trader or Investor is that they don’t take decision on their own, their decision and thoughts are determined on someone else’s opinions and views, When the market is up people tend to forget the basics which proves to be fatal during a market fall. Today there is so many outcries about FII’s selling and liquidating their stocks and that’s the reason why market is falling and every analyst want to have a ban on short selling. But have they ever thought that FII’s are not the only ones who are selling, But there are small investors also who realize that to make money in a falling market you have to short, So what’s the point in crying over FII’s.
Ultimately, everything depends on which side you are whether you are a buyer or seller, Also lot depends on your awareness about the news flows that impact. The problem with most of the Investors is that many don’t have time to think and many don’t understand the basics, All they want is quick money and come with wrong notion that market is a place to make quick money which is right provided you know what to do otherwise it can result in wealth erosion. So stop blaming FII’s for the fall of market and start thinking yourself as to who is responsible, I am sure you will find a appropriate answer.
