Share Market News / Why do share prices increase as soon as you sell them? You will be surprised to see the figures

Share Market News: Investors invest money in the stock market to increase their earnings, but many times the market dynamics and decisions of retail investors give the opposite result. When the market is bullish or pressure is seen, retail investors often sell their shares. But after this the story changes—the prices of the shares that are sold start increasing rapidly. This is not a coincidence, but a market trend, due to which investors have lost crores of rupees in the June 2025 quarter.

The story of figures

• According to Prime Database Group, retail investors reduced their stake in 967 stocks in the first quarter of FY 2026. Surprisingly, these same stocks gave an average return of more than 24% in the same period. For example:
• Reliance Industries Limited (RIL): Small investors sold shares worth about Rs 6,000 crore, but despite this the stock saw an increase of 18%.
• RBL Bank: Retail ownership fell to 15.73% from 22.15%, yet the stock jumped 43%.
• Tourism Finance Corporation of India: Retail investors reduced their stake to 21.37% from 30.14%, but the stock rose 40%.
• These figures indicate that retail investors are often selling shares at the wrong time, which prevents them from taking advantage of the market boom.

Why are retail investors selling shares?

The market saw a unique trend in the first quarter of FY 2026. According to Sunny Agarwal, Head of Fundamental Research, SBI Securities, the market was at its peak in September 2024, but it started fluctuating by March 2025. Several factors increased volatility during this period:

• Global and regional volatility: Trump's tariff statements and geopolitical tensions in the Middle East as well as between India and Pakistan created uncertainty in the market.
• Margin pressure: Many investors sold shares to cover losses in margin funding and derivatives (F&O).
• Hurry selling: Investors sold shares quickly during a short rally, thereby missing out on long-term gains.
• The biggest mistake of investors: Failure to understand the market

Apoorv Sheth, Head of Market Perspectives and Research, Samco Securities, says that retail investors often do not understand the market correctly. Many investors look at the stock market like a casino and consider stocks as a lottery. They run after quick profits, ignoring valuations, fundamentals and long-term prospects. Sheth says, "Investors panic and sell shares during a short decline, even if the long-term outlook of the company is strong."

Lessons for investors

• Some important lessons can be learned from this market trend:
• Be patient: Fluctuations in the stock market are normal. Avoid panic selling shares in a short-term decline.
• Focus on fundamentals: Analyse the company's basic factors, such as earnings, growth and market position.
• Take a long-term view: Hold investments for a long time to take advantage of market uptrends.
• Risk management: Be cautious with margin funding and F&O, as these can magnify losses.