Archive · 13 Sep 2025
Detective Solves the Death of Market 'Sanity'
Imagine the stock market as a game where prices should make sense based on how well companies are doing.
Someone called 'Mademoiselle Sanity' made sure everyone followed this rule.
But she was found dead, meaning stock prices went up even when companies weren't doing well.
A detective named Hercules Tarot investigated to find out who was messing up the game.
It turned out some mutual fund managers and regulators were letting too many new players in, preventing the market from correcting and accidentally 'killing' Sanity.
Detective Hercules Tarot investigated the death of Mademoiselle Sanity, a figure ensuring fair stock market valuations.
Foreign investors were selling stocks.
Domestic institutional investors purchased a substantial amount of stocks.
Mutual funds were identified as contributors to the problem.
New mutual fund approvals were cited as a factor in the market's imbalance.
- Who
- Hercules Tarot investigated the death of Mademoiselle Sanity in the Indian stock market.
- What
- Mademoiselle Sanity, who ensured stock prices reflected fundamentals, was found dead. Detective Tarot investigated her murder to determine the cause of the unbalanced market.
- When
- The investigation took place after Mademoiselle Sanity was found dead last month.
- Where
- The investigation took place in the Indian stock market.
- Why
- To uncover who was responsible for actions preventing a market correction.
Detective's Findings
Market Participants' Reactions
Role of Mutual Funds
Detective's Findings
Detective Tarot blamed mutual funds (represented by Alfie Patel) for buying stocks at high valuations.
Market Participants' Reactions
Alfie Patel cited that they buy stocks because the investment inflows (SIP) keep coming and SEBI is offering more approvals.
New MF Approvals and Market Health
Detective's Findings
Detective Tarot identified Surabi Saxena's role in doling out MF licenses
Market Participants' Reactions
Surabi defended the approvals, as it was part of improving market penetration.
- Victim
- Mademoiselle Sanity
- Detective
- Hercules Tarot
- Suspects
- Alfie Patel, Surabi Saxena
- Domestic Institutional Investors Stock Purchase (2025)
- ₹4,18,514 crore
- FPI Net Selling
- $15 billion
- Ambar Advani and Friends Net Stock Purchase (Jan-Jul 2025)
- ₹10,521 crore