Stocks to Buy: How to Know What Indian Investors are Buying

Introduction

Public investors are a significant force in the stock market, and their buying patterns can have a substantial impact on stock prices and market trends. By examining the behaviour of public investors over quarters, we can gain valuable insights into their decision-making and understand the implications for the stock market as a whole.

Understanding Public Investor Buying Patterns

Public investors refer to retail investors who buy stocks through brokerage accounts or other investment platforms. They are individual investors who comprise a large portion of the market.

Public investor buying decisions are influenced by several factors. These include

• Market sentiment
• Company news and announcements
• Earnings reports
• Individual investor research.

Analyzing public investor buying patterns over quarters allows us to identify trends and patterns in their behaviour.

How to find which stocks Public or Retail Investors are buying or selling?

Ticker by Finology might have just the tool you need to make well-informed investment decisions.

Our screener feature allows you to filter through thousands of stocks listed on the Indian Stock Market, based on various criteria, including publicly available data on shareholding. With just a simple query, you can identify stocks that have seen an increase or decrease in public holding over a period of time.

1. To get started, all you need to do is sign up or log in to Ticker by Finology.
    
2. Then click on Screener in the menu. It is a free tool for all users, and with just a few clicks, you can get access to all the information you need to make investment decisions.
    
3. To use the screener to find stocks that retail investors or the public are buying, you can simply use the query Public Holding Q1 > Public Holding Q2. This will filter out stocks where there has been an increase in public holding from previous quarter to latest one.
   


4. Additionally, you can use the screener to find out which stocks they have sold over quarters, and this information can serve as an indicator of potential trends in the market.

With the screener tool, you can also explore different combinations of formulas to filter stocks, such as stocks where the increase in holding is greater than 1%, 5%, or any other value that you want to set.

At Ticker by Finology, we understand that investing in the stock market can be a daunting task for many people. Our platform is designed to make it easier for retail investors to access important data and information to help them make informed investment decisions.

With our screener tool, you can identify stocks that are popular among the public, and use this information to guide your investment choices. We do not provide recommendations to buy or sell any particular stocks, but the data we provide through the screener can give you a better understanding of market trends and help you make informed investment decisions. 

Few Stocks with more than 50% of Public Investor Holding

You can easily find out stocks with more than 50% public investors holdings using the screener and query Public Holding Q1 > 50.  Some of the results as of Septmenber 2023 quarter include: 

• Suzlon Energy Ltd: Leading renewable energy solutions provider in India, focusing on wind power. Facing challenges due to project delays and debt, but has potential for long-term growth in the green energy sector.
   
• BSE Ltd: India's oldest and largest stock exchange, offering trading platforms for various financial instruments. Relatively stable with a dominant market position, but competition is increasing in the financial services sector.
   
• RBL Bank Ltd: Mid-sized private bank in India with a focus on retail banking. Has faced past challenges with regulatory issues and asset quality, but recent efforts to improve profitability show promise.
   
• Lakshmi Machine Works Ltd: Leading manufacturer of CNC machine tools and other heavy machinery in India. Well-established company with strong brand recognition, but cyclical industry and competition pose risks.
   
• Indian Energy Exchange Ltd: India's largest energy trading platform, facilitating the buying and selling of electricity and other energy commodities. Strong growth potential in the deregulating energy market, but volatility in prices can impact performance.
   
• Indiabulls Housing Finance Ltd: Major player in the Indian housing finance market, providing loans for home purchases and construction. Strong brand and wide reach, but exposure to the real estate market carries risk.
   
• Reliance Power Ltd: Diversified power generation company with a mix of thermal, renewable, and hydro assets. Facing challenges due to high debt and project delays, but potential for improvement with restructuring efforts.
   
• Ion Exchange (India) Ltd: Leading water treatment solutions provider in India, offering technologies and services for various industries. Strong growth potential in the water management sector, but competition exists from global players.

Get the full list on our stock screener in seconds for free. 

Impact of Public Investor Buying on Stock Prices

Public investor buying can have a direct impact on stock prices. When public investors buy more shares of a particular stock, it increases demand in the market. This increased demand can drive up the stock price as there are more buyers than sellers.

Conversely, when public investors sell large quantities of a stock, it can lead to a drop in price due to increased supply and reduced demand. The magnitude of the impact depends on the size of the public investor population and the volume of shares being bought or sold.

To illustrate this impact, consider the example of a popular tech company. If public investors, driven by positive sentiment and belief in the company's future prospects, start buying substantial amounts of its stock over multiple quarters, it can create a significant upward price movement. This buying activity may also attract institutional investors and further fuel the stock's upward trajectory.

On the other hand, if public investors collectively sell shares of a company due to negative news or poor performance, it can lead to a decline in the stock price and trigger a bearish trend.

Implications for Market Sentiment and Trends

Public investor buying activity can significantly influence market sentiment. When public investors are bullish and actively buying stocks, it creates a sense of optimism and positive sentiment in the market. This positive sentiment can drive up stock prices across various sectors and lead to a broader bullish trend. Conversely, when public investors are bearish and selling stocks, it can create negative sentiments and trigger a cautious or even pessimistic market environment.

Monitoring public investor buying patterns can provide insights into overall market trends. When public investors consistently buy stocks across multiple sectors and industries, it can indicate a broader market rally. Conversely, if public investor buying is concentrated in specific industries or sectors, it may indicate sentiment-driven investments in those particular areas.

Case Studies on Public Investor Buying

Several notable instances demonstrate the impact of public investor buying on the stock market. For instance, during periods of strong economic growth and increasing public investor participation, stock markets have experienced prolonged bullish trends.

In contrast, during market downturns, public investor selling has been observed to intensify the decline in stock prices. Case studies highlight the importance of monitoring public investor buying trends to understand market dynamics and make informed investment decisions.

Strategies for Investors Leveraging Public Investor Buying Data

By analyzing public investor buying data, retail investors can gain valuable insights and make informed investment decisions. When public investors consistently buy stocks in a particular industry or sector, it may indicate opportunities for growth and positive sentiment. Conversely, monitoring public investor selling activity can provide warnings or signals about potential market downturns that may impact specific stocks or sectors.

Utilizing this data enables investors to align their strategies with market trends and investor sentiment.

Conclusion

Public investors play a significant role in the stock market, and their buying patterns can have a notable impact on stock prices and market sentiment. By tracking public investor buying over quarters, we can understand their behaviour, identify implications for the stock market, and leverage the insights gained to make informed investment decisions.

Monitoring the patterns and trends of public investor buying provides valuable information for investors, allowing them to navigate the complex stock market effectively.