NSE Nifty declined by a phenomenal 13.5 per cent over the last seven trading sessions. During this period, FIIs turned sellers. Their net sales amounted to Rs.3,676 crore. But, at the same time, MFs were net buyers to the tune of Rs.2,372 crore.
Total institutional activity turns out to be: FIIs + MFs = -1,304 crore (ie. -3,676 + 2,372).
Net sales of Rs.1,304 is too small an amount to result in a 13.5 per cent decline. Then why did the benchmark indices fall at such an alarming rate ? And more importantly, who is selling big, if not the institutions (taken in aggregate) ?
Any ideas/guesses ?