There has been selling close to Rs 85,000 crore from promoters/insiders/IPO in the calendar year 2021, IIFL said in a note recently. At the same time, there has been an institutional buying of not more than Rs 48,000 crore, the note added.
Hence, selling is almost double of what the institutions have bought, including both foreign institutional investors (FIIs) and domestic institutional investors (DIIs). This means that half of the buying is essentially being done by HNIs, retail investors and so called invisible hands.
Talking about the primary market, IIFL said that there have been issuances of close to over 1 lakh crore. But the interesting part is that most of the IPOs this year are offer for sale (OFS) and not primary issuances. This means that money is taken out by the promoters or the private investors and the money is not going into the company.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.