what's the point of FII in Indian markets?

onlinegtrash

Well-Known Member
#1
This might be a dumb question... but some one help me.

FII make profits at the expense of domestic investors. Its usually FII are the informed investors.

So FII comes in, buys low and sells high back to domestic investors...

well, then what's the point of having FII in Indian market?
wouldn't we better off without playing with a strong poker player ?
why should we invite him (i.e FII) to our home to play poker with us and then lose back to him!?

FII are not lending loans for local development with cheap interest rates...
they are making money in FnO and cash segment at the expense of domestic crowd!

I know this is very simplistic view of markets... but anyways am asking it...
 

amitrandive

Well-Known Member
#2
This might be a dumb question... but some one help me.

FII make profits at the expense of domestic investors. Its usually FII are the informed investors.

So FII comes in, buys low and sells high back to domestic investors...

well, then what's the point of having FII in Indian market?
wouldn't we better off without playing with a strong poker player ?
why should we invite him (i.e FII) to our home to play poker with us and then lose back to him!?

FII are not lending loans for local development with cheap interest rates...
they are making money in FnO and cash segment at the expense of domestic crowd!

I know this is very simplistic view of markets... but anyways am asking it...

1)To provide the so called devilish "Liquidity" to the markets
2)To experiment and implement their algorithmic trading programs and soft wares.
3)To provide entities to blame in case of stock manipulation,sudden stock spikes,gap ups and gap downs.
4)To show the world that in-spite of no strong economic reforms the Indian markets are performing to the best.
5)To show to all investors and traders that our Watchdogs are really sleeping.
 

sudoku1

Well-Known Member
#3
This might be a dumb question... but some one help me.

FII make profits at the expense of domestic investors. Its usually FII are the informed investors.

So FII comes in, buys low and sells high back to domestic investors...

well, then what's the point of having FII in Indian market?
wouldn't we better off without playing with a strong poker player ?
why should we invite him (i.e FII) to our home to play poker with us and then lose back to him!?

FII are not lending loans for local development with cheap interest rates...
they are making money in FnO and cash segment at the expense of domestic crowd!

I know this is very simplistic view of markets... but anyways am asking it...
So FII comes in, buys low and sells high back to domestic investors...
MANY fiiS hav burnt their hands badly in our mkts in past.
well, then what's the point of having FII in Indian market?
d most imp advantage of having dem here is LIQUIDITY.
wouldn't we better off without playing with a strong poker player ?
why should we invite him (i.e FII) to our home to play poker with us and then lose back to him!?
wel , how wud 1 respond if cricket matches r played btwn our own players wid our own teams only ?
they are making money in FnO and cash segment at the expense of domestic crowd!
nt all of dem make money in fno ! wud 1 break his own tooth if it bites d tongue ? no na ? u wil take care of d tongue instead.so if u perceive dat dey r making money at d xpense of our domestic crowd , dont u think its high time our crowd needs 2 sharpen their skills 2 fight back ? stock mkts or sports , if u r confident , nothing can stop u xcept 1 thing ! ur own self.
listing below sm dialogues frm d movie 300 , hope u get wat d FIIs want .:)


King Leonidas :
No retreat, no surrender. That is Spartan law. And by Spartan law, we will stand and fight... and die. A new age has begun: an age of freedom! And all will know that 300 Spartans gave their last breath to defend it!
Spartans! Ready your breakfast and eat hearty, for tonight, we dine in hell!

Dilios :
"Remember us." As simple an order as a king can give. "Remember why we died." For he did not wish tribute or song. No monuments, no poems of war and valour. His wish was simple: "Remember us," he said to me. That was his hope. Should any free soul come across that place, in all the countless centuries yet to be, may all our voices whisper to you from the ageless stones: Go tell the Spartans, passer-by, that here, by Spartan law, we lie. So my king died, and my brothers died... Barely a year ago, long I pondered my king's cryptic talk of victory. But time has proven him wise. For from free Greek to free Greek, the word was spread that bold Leonidas and his 300, so far from home, laid down their lives, not just for Sparta, but for all Greece and the promise this country holds! Now, here on this ragged patch of earth called Plataea, Xerxes' hordes face obliteration! Just there the barbarians huddle, sheer terror gripping tight their hearts with icy fingers, knowing full well what merciless horrors they suffered at the swords and spears of 300. Yet they stare now across the plain at 10,000 Spartans commanding 30,000 free Greeks! [Spartan Army] Haroo! [Dilios]: The enemy outnumber us a paltry three to one; good odds for any Greek. This day we rescue a world from mysticism and tyranny, and usher in a future brighter than anything we could imagine! Give thanks, men! To Leonidas, and the brave 300! To victory!
 

onlinegtrash

Well-Known Member
#4
I was reading something about python quants...
Its amazing the amount of technology and know hows FIIs have at their disposal!

Real time risk analytics and risk adjustments for retail traders... well not going to happen so easily I guess! but retail traders are betting with/against FII!
from:http://www.thepythonquants.com/
Kirat Singh

previously served as the Head of Global Markets Risk Systems at Bank of America, where he was tasked with building a real-time integrated derivatives and securities trading, risk, analytics, and applications platform. This platform, called Quartz, consists of over ten million lines of Python code written by a team of 4,000 programmers deploying applications to thousands of users' desktops across all lines of business. Quartz is one of the world's largest Python platforms and the largest use of Python in the finance industry. Prior to this, Kirat was at JP Morgan where he led a team which designed and built a global ...
 

SexyTrader

Well-Known Member
#5
This might be a dumb question... but some one help me.

FII make profits at the expense of domestic investors. Its usually FII are the informed investors.

So FII comes in, buys low and sells high back to domestic investors...

well, then what's the point of having FII in Indian market?
wouldn't we better off without playing with a strong poker player ?
why should we invite him (i.e FII) to our home to play poker with us and then lose back to him!?

FII are not lending loans for local development with cheap interest rates...
they are making money in FnO and cash segment at the expense of domestic crowd!

I know this is very simplistic view of markets... but anyways am asking it...
FIIs bring in the much needed liquidity :thumb: Its good to play with someone that brings in lotsa cash...better allow all risk-taking countries to come and "play" with us :cool:

Secondly, no fun in playing with cautious domestic investors....lets have some risk-taking foreigners betting on us so that we can scalp them daily! :)

Algo or no Algo....technology and all fails hands-down in front of our HUMAN BRAIN :) I trust my Brain more than any technology!
 

sridhar

Active Member
#7
Factor in the currency movements, as also their hedging in F&O, and you will find that many of them do not make any great money. I remember hordes of the Japs coming in when the mkt was at its peak in 2007 & bailing out at the bottom in 2008.
It is the govt making money with the stt & the banks converting currencies to INR. Also the average retail investor used to, and continues to, always get butchered. Only now he gets butchered by the foreigner instead of the local operators.
 

sudoku1

Well-Known Member
#8
Factor in the currency movements, as also their hedging in F&O, and you will find that many of them do not make any great money. I remember hordes of the Japs coming in when the mkt was at its peak in 2007 & bailing out at the bottom in 2008.
It is the govt making money with the stt & the banks converting currencies to INR. Also the average retail investor used to, and continues to, always get butchered. Only now he gets butchered by the foreigner instead of the local operators.
Also the average retail investor used to, and continues to, always get butchered. Only now he gets butchered by the foreigner instead of the local operators.
Its a viscious cycle.now who is d average retail invester ?every bull run attracts a horde of new overly ambitious investors , some wid deep pockets,some wid wild dreams .wen d show gets bust,majority disappear 2 oblivion, while a handful start healing der wounds by learning skills fr survival.wid a new bull run , a lot of dem frm dis group disappear blaming der luck n mkts.aftr a few bull mkts u wil see a miniscule fr dis shrinking grup making way 2 consistent profits, learning frm d 1st thud n improving der skills wid every bull run n at d same time becoming more wiser , consistent n more hard working. n d process keeps on repeating year aftr years.
its jst like ur playgroup school 2 ur college life wher u will see jst a handful of dem making der dreams come tru while d rest of d classmates act like AVERAGE RETAIL INVESTORS:)
 
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