Retail Investors Turn Buyers in June

So far, they have invested ₹5,607 crore in cash market after being net sellers for 3 months

- SUNDAR SETHURAMAN

After sitting on the sidelines for three months, retail investors jumped into the equity fray in June amid a sustained rally in stock prices.So far this month, they have invested ₹5,607 crore in the cash market.

In the previous three months, they had yanked out close to ₹20,000 crore.

The retail buying comes as benchmark Nifty is poised to log its fourth straight month of gain. The index had posted losses during the preceding five months.

Analysts said retail investors were waiting for markets to stabilise.

"A sense of stability returns when bad news is no longer impacting the price. When you see 15-30 days of markets moving up or even on days when the market is down, but the breadth of the market is stable, that is the time when sentiment changes, and that's what happened," said Amar Ambani, executive director of Yes Securities.

Ambani added that foreign portfolio investors (FPIs), who have been net buyers since April, have also been a morale booster for retail flows.

FPIs turned net buyers of Indian equities from April onwards after being net sellers in five out of the six preceding months.