Archive · 16 Sep 2025
Domestic Mutual Funds Support Indian Equities
Investors are watching the Indian stock market.
While some foreign investors are selling, domestic investors are buying, which has prevented a big drop in prices.
This is happening because foreign investors have concerns about earnings and tariffs.
Some believe upcoming changes like rate cuts and tax cuts might help the market grow.
The expert Christopher Wood thinks the market is consolidating and that reforms could boost the economy and stocks.
Domestic mutual funds have helped stabilize Indian equities amid FII selling.
FIIs have sold over Rs 1 lakh crore in Indian stocks since July.
Domestic investors invested $37.6 billion in the first five months of FY26.
FII sell-off is due to earnings, valuation, and tariff uncertainties.
Potential catalysts for market growth include tax cuts and reforms.
- Who
- Domestic mutual funds and Foreign Institutional Investors (FIIs)
- What
- Domestic mutual funds are supporting Indian equities amidst FII selling.
- When
- July to September 8th
- Where
- India
- Why
- Due to persistent selling by foreign portfolio investors, along with factors like lacklustre earnings and stretched valuations.
Foreign Institutional Investors
Domestic Mutual Funds
Market Outlook
Foreign Institutional Investors
Negative, selling due to lack of confidence.
Domestic Mutual Funds
Positive, buying to support the market.
- Domestic Mutual Fund Support
- Shielded equities from 20-30% decline
- FPI Outflow (since July)
- Over Rs 1 lakh crore
- Domestic Inflows (first 5 months FY26)
- $37.6 billion
- FII Sell-off Drivers
- Lax earnings, stretched valuations, tariff uncertainty
- Potential Market Catalysts
- Rate cuts, GST reforms, tax cuts