With the US Federal Reserve cutting interest rates by 50 basis points on Wednesday, international financial flows are likely to shift. Lower interest rates in the US can result in Foreign Institutional Investors (FIIs) reallocating funds towards emerging markets like India, as they seek higher returns on investments. This move can impact market sentiment significantly, leading to higher inflows or outflows that traders and investors need to monitor closely.
The FII/DII Activity feature on Upstox Pro helps you to understand the flow of money in and out of the Indian financial markets, providing insights that can influence trading strategies. You can track these crucial institutional flows in real-time.
How to Access the FII/DII Activity Feature on Upstox Pro:
- Open Upstox Pro.
- Go to the ‘Discover’ tab
- Click on the ‘Explore’ section
- Scroll down to ‘FII/DII activity’
- You can check both ‘Cash market’ and ‘FII derivatives’
By tracking the behaviour of FIIs post the US Fed rate cut, you can gauge market sentiment and adjust your trading strategies accordingly. A surge in FII inflows might indicate a bullish outlook, while outflows could suggest caution. Similarly, keeping an eye on DII activity can help balance your understanding of domestic institutional responses to international monetary policy changes.
Have more questions regarding this feature? Check out our FAQ post on the FII/DII Activity feature.