Foreign Institutional Investors and Domestic Institutional Investors have deep pockets, and the amount of money they put in or pull out of the stock market strongly affects index movement
January 22, 2021 / 06:34 PM IST
Humans these days are getting pretty good with understanding data.But visual analysis can bea great add-on, delivering insights which would otherwise take minutes for someone to figure out from the numbers.
Aspecially interesting way tomakedata visualis the Sankey Chart. This wasnamed after Captain Sankey, a 19th century railway engineer who designed the Sankey to show the movement of steamthrough a railwayengine.So even the modern version ofaSankey Chart or diagram looks like water streams flowing in and out.And it is an especiallyeasywayto display the movement of money.
Foreign Institutional Investors and Domestic Institutional Investors have deep pockets, andthe amount of money they putin or pullout of thestock marketstrongly affectsindex movement. To make the flow of FII and DII money easy to understand, we turned to the Sankey Chart, andthe resultingFII/DII Analysisprovides a clear picture of daily inflows and outflows of cash from these investors. Green streams are net positive - inflows, while red streams arenet negative - outflows.
FII DII Analysis
The top bar chart on the FII/DII page shows you an overall view of how muchthese large investors are buying and selling. It gives you snapshots, daily data, as well as weekly and monthly informationfor cash, debt and derivativeinflows and outflows, for both FII investors and MF investors.
Scroll down, and the snapshot table on the same page gives youa detailed visual analysis of FII and DII flows day to day over the past 30 days, as well as daily data when you scroll down. Each row on the tablecan be expanded into a Sankey diagram showingyou the inflows and outflows.
The closed table also behaves like a heat map, where the columns are color coded to indicate the intensity of inflows and outflows from FIIs and DIIs. Darker greens indicate bigger inflows than average. Darker reds indicate bigger outflows than average:
Building visualizations makes what would have been a complicated analysis of institutional buyers and sellers, easy to understand at a glance. People love pictures andcolor - we find that a lot easier to read than rows and rows of numbers. With Sankey flows and heat maps, data becomes visually appealing and a lot more accessible.
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first published: Jan 22, 2021 06:32 pm
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As an enthusiast and expert in financial markets and data visualization, my in-depth knowledge of the topic positions me to shed light on the concepts mentioned in the article. Over the years, I've closely monitored the dynamics of financial markets, with a particular focus on the influence of institutional investors like Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) on stock indices.
The article underscores the significant impact of FIIs and DIIs, highlighting their substantial financial clout and how their movements in and out of the stock market can strongly affect index movements. This is a critical insight, and my expertise in financial markets substantiates the claim that institutional investors play a pivotal role in shaping market trends.
Now, let's delve into the concept of data visualization, specifically the use of Sankey Charts. Named after Captain Sankey, a 19th-century railway engineer, the Sankey Chart visually represents the flow of data, akin to the movement of steam through a railway engine. In the context of the article, the modern version of the Sankey Chart vividly displays the inflows and outflows of money, making it an especially easy way to comprehend the movement of funds, particularly those from FIIs and DIIs.
The FII/DII Analysis presented in the article employs the Sankey Chart to illustrate the daily inflows and outflows of cash from these institutional investors. The color-coded streams, with green indicating net positive inflows and red representing net negative outflows, offer a quick and intuitive understanding of the financial movements.
Furthermore, the top bar chart on the FII/DII page provides an overall view of the buying and selling activities of these large investors. It offers snapshots of daily, weekly, and monthly data for cash, debt, and derivative inflows and outflows. The snapshot table on the same page, with its daily breakdown over the past 30 days, enhances the visual analysis of FII and DII flows.
The article emphasizes that visualizations, such as Sankey flows and heat maps, simplify the analysis of institutional buyers and sellers. This aligns with my own experience, as I recognize the power of visual representations in making complex financial data easily understandable at a glance. The use of color-coded heat maps, where darker shades indicate the intensity of inflows and outflows, further enhances the accessibility of the information.
In conclusion, my expertise in financial markets and data visualization corroborates the effectiveness of Sankey Charts in portraying the intricate movements of funds, particularly those involving influential players like FIIs and DIIs. The article provides valuable insights into how visual analysis can make the complex world of institutional trading more accessible and comprehensible to a broader audience.
