The small investors have many disadvantages in Indian stock market. They seldom get the correct news at correct time. Getting news late is equal to getting no news at all or at times results in negative action. Stock market in most cases reacts sharply to news and small investors left gaping in the dark and wondering why the stock price has reacted in a particular manner. (My earlier posts, here, here, here)
It is a known fact that the market mostly reacts to the tunes of big investors. The FIIs generally accounts for around 33-35% of total market turnover, domestic mutual funds around 10-12% and HNI have their mixed share. Stock price reacts positively if a particular stock is picked by these big investors and negatively if a stock is off loaded by them for the sheer volume traded.
It is also important to know how much big investors are holding a particular stock, or if the big investors have increased their holding in that particular stock.
There are few sites from which the above information can be accessed. These sites will serve the small investors better if utilized judiciously
Words of caution: It seems easy to piggy-ride the big institutional investors but actually not so. These information are available only after the deals are made, at the end of the trading hours and by the time most of the benefits generally erode away. For small investors so there is every chance of being in the wrong side of a particular trade. One should remember that the mere presence of institutional investor in a particular stock does not necessarily enhance the intrinsic value of that stock. Big institutional investors may stay invested in any stock for many other reasons.
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