The 4.63 per cent rally in the stock market in September to all-time highs is being led by domestic institutional investors (DIIs) — including insurance companies, mutual funds and pension funds — and hyper active retail investors with DIIs pumping in over Rs 10,000 crore in the cash market amid worries over excessive valuations.
Despite high valuations, especially in mid and small caps where retail investors are showing “irrational exuberance” and high expectations, domestic funds have been quite active, taking the indices to new peaks on a daily basis. On the other hand, foreign portfolio investors (FPIs) have been sellers in the ongoing bull rally, withdrawing over Rs 9,500 crore from the cash market in September.
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