Foreign institutional investor(FII) GRAPHS

Since the FIIs practically move the markets, I have always wondered why nobody graphs their activity. I found the data on www.moneyconrtrol.com and have plotted the graphs on FII graphs.DOC( file attached). The first page shows the graphs year wise(1999-2004-major trend) followed by the latest page( intermediate trend Jan-December-2004). Please not that on next page ,though 12 figures have been plotted, the thirteenth( Jan2005) is also mentioned since that happens to be the latest month which just got over.

No point going further although you can still plot minor trend by having daily figures from the above website. If someone knows how to plot moving averages on excel graphs the way we do in Metastock, even the minor trend(daily) can also be interesting

Please note that this only covers FII equity investments and not debt investments.

You can enlarge or reuce graphs as per your liking. Maybe these graphs are mentioned in some magazine but one does not normally come across them on websites or softwares like metastock(Considering their importance, they should be there?):-

I have always wondered why any investment guy
Has fallen shy
Of Attempting to plot a graph on the activities of FII
Without their involvement, the stock market would almost die
To suggest otherwise would be a lie
These figures imply
That their investment in India is set to multiply
By the looks of things, India is going to fly
Lets hope they never stop their funds supply(goes for credit's posts too)
Most of you should approvingly reply
Any mistakes be excused; I am not a graphs expert; nevertheless I had to try

The mutual funds data is not there in the above site though the option can be clicked. If somebody knows where similar data is available for mutual funds,we can plot the same for them for mutual benefit.

Attached Files

FII GRAPHS.doc (85.5 KB, 97 views)

Can't help adding:-

The figures clearly show that we can not only smile but afford to laugh
The latest 2004 FII graph
On India is as long as a Giraffe
The FIIs are putting their money where their mouth is; this is no frivolous chaff
Hopefully, our India shall no longer economically remain a dwarf
As long as there is no severe adversity or stupidity on politicians/bureaucrats behalf

On a realistic note, the foreign direct investment in India is much less compared to China. With Manmohan singh and Chidambaram at the helm of affairs, things should go well. One can only hope that politicians/bureaucrats do not spoil the act again this time.

Informative post. Entertaining poetry

It is a strange coincidence that the former editor of economic times, Swaminathan. S. Anklesaria Aiyer has chosen this Sunday to mention FII investments in his regular column in Sunday times of India.

In the article he mentions how Finance Minister has to do a complex balancing act-increasing spending, cut taxes, reduce fiscal deficit and raise millions to finance govt education and poverty programs. Practical way out is to get FIIs to invest in public sector industries. Since the common minimum programme has ruled out sell of majority stake in public sector companies, the FIIs have to be enticed to pick up public sector shares because they normally invest only in private sector companies where they can purchase and sell in bulk but there also they have reached a saturation point with stakes in companies like ICICI raised to 74%.

Thankfully the FIIs have lapped up issues of NTPC, ONGC, Power trading corporation and other profitable public sector companies. One hopes that the “trend” continues.

The article ends by mentioning how Chidambaram acted swiftly to end speculation when the RBI governor wondered loudly whether the FII inflows should be taxed.

This is what I meant earlier when I mentioned political/bureaucrat stupidity. Fortunately with technocrats like Chidambaram/ Manmohan singh at the helm, we have already achieved an “intermediate top” of sorts.

To ensure that the FIIs stay with us through thin and thick
Not only must the private sector tick
We have to ensure the same for that other sector-public
The govt should sell all companies that are sick (actually, others too)
Thankfully these days their shares are considered investment worthy and chic
The public sector can actually no longer afford not to be slick
What Chidambaram has done above to stem the rot is to my mind music
Anybody who comes in the way of progress deserves a kick
Only then ,in the long run, other countries India should be able to economically lick.

We are not in competition with other countries but India should stand tall sometime economically as well. I had the privilege of hearing the late Shri Nani Palkhiwala whose condemnation speeches of the budget were more sought after than the budget itself. He would say things like how the city of Hong Kong was exporting more than the whole of India and things like that. One would really feel put off. It would remind you of our performance in the Olympics. One really hopes India and China do well in the 21st century.

A very lucrative Message!!! But political/bureaucrat stupidity is unavoidable in INDIA!!!
What do you say guys??

Bond

This is an extract from Mr Sudarshan Sukhani's (technicaltrends) newsletter for yesterday(7/2/2005). I am only giving the FII portion since it is relevant to this post.

"The Nifty continued with its bullish thrust, gaining 70 points over the previous week. This strong pre-budget momentum is helped by large FII purchases. All in all, a good scenario for the bulls.

( Don't take the above too literally. In today's newsletter becuase of two continous bearish patterns, caution has been adviced and a close below 2040 deemed dangerous. One can never be sure with the stk market)
In January, the FII's were absent from the market, on many days they remained net sellers. The Market took a sharp dip in the month. Recovery began when FII buying resumed. The Indian Market moves up mainly on the positive sentiment created by the continued buying by FII's. When that stops, the 'operators' seem to unload shares and prefer to stay on the sidelines. We should check FII buying numbers regularly. This gives an immediate feel on the likely direction of the Market. "

I have never understood why their activity too cannot be graphed and presented on software packages and elsewhere. I had even asked the Viratech people once whether such graphs are there but they expressed unawareness. Its missing the wood for the trees:-

If there can be a Chakin’s money flow
Considering the fact that they make the stock markets glow
To enable a laymen to follow
Why isn’t there a graphical presentation of FII involvement-whether high or low?
It would be a better indicator of whether the markets are fast or slow
In its absence, the decisions could be hollow and shallow
Which could end up in a severe financial blow
Using prose and poetry, I have tried to highlight in a voice loud and mellow
I hope this challenge is taken up by some technical fellow
I don’t think there is any need for further prose or poetry below

First Mr Aiyer and then Mr Sukhani- both writing immediately after my post two days ago.A classic case of charts following the indicator or the lull before the storm? I sure wish to reach their level someday instead of just induging in frivolous poetry.