FII Vs Retail Investors: Who Will Support India’s Stock Market? | Punita K Sinha Explains

Domestic investors have played a key role in supporting Indian equities amid sustained foreign investor outflows. However, slowing new SIP registrations, investor losses and rising allocations to liquid funds could challenge the strength of domestic flows. Punita Kumar Sinha, Managing Partner, Pacific Paradigm Advisors, says a meaningful market recovery may prompt some retail investors to redeem their investments as they look to exit positions held at a loss. Meanwhile, foreign investors who have made gains in other markets could return to India with fresh capital. She also highlights how newer investors are experiencing a reality check after years of strong market rallies.