Let’s have a look at recent FPI Net Outflows –
October 2021 – 17033 crore
November 2021 – 5710 crore
December 2021 – 13150 crore
January 2022 – 35,975 crore
February 2022 – 37,689 crore
FII roughly sold ~₹2,00,000 crores in past few months. If this would have happened, few years back the markets may have locked in lower circuits.
So what’s stopping it now. Who is arresting major price falls? Welcome- Retail Investors. All credit goes to the modern retail investors buying the dips and SIPing via mutual funds.
We’ve had 3rd Covid wave, Russia-Ukraine war crisis, USA Sanctions, Crude $130/barrel, Commodities inflation, etc. And we still managed to hold Nifty at 15,750, 15% corrections from top despite of the the worst possible headwinds.
Now, I’m sticking my neck out to say this is the near term bottom. Market seems to have priced in all the near term known headwinds.
The fun starts now. FIIs which have sold ₹2,00,000 crores will sooner or later have to come back to India, being an excellent & stable emerging market.
The question is, will they get better entry levels now? What if not? They’ll have to compulsively buy on the way up to 17-18-19k. This would drive the market insanely high if FIIs aren’t able to buy their share of quota at current lower levels.
The disciplined Indian retail investors have outsmarted FIIs this time. Kudos to them.
