I am trying to make sense of the fact that FII is selling so market is coming down (including geopolitical situation). Since, for every sell they do some buyer will get it and the market should stay whereever it is. DII’s are ALMOST pumping in to match FII selling, here and there few 100 points up/down ok but this much fall I dont know and not able to make sense:(
It doesn’t work that way. Yes there is a buyer available for every seller, but doesn’t necessarily means buyer will agree for whatever price the seller is quoting. Maybe Seller will Ask ₹100 but buyer will bid ₹90. Depending on all the factors (global cues, sector, stock specific news/strengths, results etc) either the buyer has to increase his bid price or seller has to decrease his ask price until both agree at a price say ₹95.
This way the stock price will will either increase or decrease. (Depending on supply and demand)
Thank you Nidal, it makes sense:)