Charging Bulls Or Biting Bears, Stick To Your Investments

With Domestic Institutional Investors (DIIs) turning net buyers in the Indian equity markets over the last couple of months, there is hope that the bull run would continue for the next two-three quarters, till the end of calendar year 2021. This optimism is based on the trend in Foreign Portfolio Investors (FPIs), who recently turned net sellers in the equity market. Although Covid-induced uncertainties may eventually spoil the optimism, the dynamics has once again highlighted the divergent trend in the approach of the two sets of institutional investors. The Indian equity markets have seen that FPIs and DIIs – comprising domestic mutual funds (MFs), insurance companies, EPFO and NPS – are on the opposite side of the trade. When one goes on a buying binge, the other sets out on a selling spree. This time, the FPIs who were net buyers in the market till March have become the...