Q1. - What is FPI fortnightly and AUC investment data?
Ans.-FPI Fortnightly Investment Data:
FPI stands for Foreign Portfolio Investors.
The FPI Fortnightly Investment Data provides insights into the investment trends of foreign investors in India.
It includes details about the sectors in which foreign investors are putting their money.
This data is updated every fortnight (every two weeks).
You can find the Fortnightly Sector-wise FPI Investment Data on the websites of NSDL and CDSL and Filtered version on niftyeod.com
AUC (Assets Under Custody) Investment Data:
AUC refers to the total value of assets held by foreign investors in India.
It includes investments in equities, debt securities, and other financial instruments.
Q2.-Can We use these data in trading & Investment ?
Ans.-FPI Fortnightly Investment Data:
Sector Analysis: Monitor the sectors that foreign investors are favoring. If there’s consistent FPI inflow into a specific sector (e.g., banking, technology, or energy), consider aligning your trades with these trends.
Stock Selection: Look at individual stocks within sectors that receive significant FPI inflows. These stocks may experience positive price movements due to increased foreign investment.
Market Sentiment: FPI data reflects investor sentiment. If FPIs are bullish on Indian markets, it could signal overall market optimism.
AUC (Assets Under Custody) Investment Data:
Overall Market Health: AUC data provides an overview of foreign investors’ total exposure to Indian assets. High AUC indicates confidence in the market, while low AUC may signal caution.
Country-wise Allocation: Check which countries’ investors have the highest AUC in India. Their actions can impact market movements.
Client Category Insights: AUC data categorizes investments by different client types (e.g., sovereign wealth funds, pension funds). Analyze their behavior for potential trading cues.
Practical Steps:
Stay Updated: Regularly check the fortnight and AUC data.
Combine with Technical Analysis: Use fortnight and AUC data alongside technical analysis tools (e.g., candlestick patterns, moving averages) to make informed trading decisions.
Risk Management: While FPI data can guide your trades, always manage risk. Don't solely rely on one data source.
Remember that data alone doesn't guarantee success. Combine it with other research, market analysis, and risk management strategies to enhance your trading decisions. 📈📊