FII Selling Explained: Causes, Timing, and Impact on Nifty-50
WHY ARE FIIs SELLING? WHEN WILL THE SELLING STOP? | PART 1 – THIS TOO SHALL PASS | NIFTY-50 CRASH
The Federal Reserve kicked off its most recent rate cut cycle with a big bang 50 basis points cut on 18-Sept-24. Equity markets around the world, including India’s flagship NIFTY-50 Index cheered the start to rate cuts in the US with a strong surge. The NIFTY hit a new all-time-high on 26-Sept-24. However, since then, the NIFTY has witnessed what can only be described as a roller-coaster of a ride. The NIFTY first corrected by over 2,900 points from its most recent all-time-high, which amounts to a correction of almost 11%, post which the index has also started to stage a recovery of sorts since 21-Nov-24, as part of which the NIFTY has already recovered almost half of what it has shed since Sept-24.
That said, the sheer speed and scale of the correction so far has been such that it has caught even the most seasoned of investors unawares, and the foremost question on every investor’s mind right now is whether this correction is over for good? And if NOT, then how much more can the NIFTY potentially correct further from here? I will be taking up these very questions in this brand new series which I am shooting in Hindi for the benefit of viewers who prefer to view my videos in Hindi. In this Part 1 of the new series, I examine how has the NIFTY typically behaved in the past in the aftermath of the Fed kick-starting rate cut cycles in previous business cycles, and if there are any parallels between how the NIFTY behaved in those cycles and what we have been witnessing with the NIFTY since the start of the most recent rate cut cycle on 18-Sept-24. So do watch this video till the end.
