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In November, mutual funds injected Rs 43,465 crore into the equity market, which neutralized the foreign selling pressure. Due to continuously high SIP inflows, domestic investors have emerged as the biggest force in the market. On the other hand, huge withdrawal of Rs 72201 crore was seen from debt funds, which is indicative of the trend that investors still have confidence in equity.
New DelhiThe biggest role behind the strength with which the Indian stock market appeared in November was played by domestic investors, Despite market fluctuations, the level of purchases made by mutual funds negated the entire impact of foreign selling, The latest data from SEBI has made it clear that the Indian market is now surviving on the habits of small investors,
In November, mutual funds invested Rs 43465 crore in the equity market. This is almost double the amount of Rs 20718 crore in October. Amidst the continuous global uncertainty and selling of foreign funds, such huge purchases played an important role in maintaining the Indian indices.
Record buying in equity but historic withdrawal in debt
While gains were seen in stocks, the situation was opposite in the debt segment. Withdrawals of Rs 72201 crore were recorded from debt funds in November. In October this figure was only Rs 12771 crore. This means that investors are increasingly moving away from safe schemes with low returns and towards equities with better returns.
Experts say that considering the interest rate environment and global risks, investors are currently considering debt schemes unattractive.
The magic of SIP, small investors become the real savior of the market
SIP has really saved the Indian stock market. In October, SIP inflow had reached a new record of Rs 29529 crore. This continuously increasing inflow shows that common investors have become completely disciplined about their investments every month.
Experts believe that the market did not fall even after the selling of foreign funds because the SIP money kept lifting the market with every fall. This is the reason why Sensex and Nifty remained stable despite many pressures.
Some balance also continues, slight trend towards gold and debt
The inclination towards equities is strong, but some investors are also making limited investments in gold and debt based schemes to balance the risk. This indicates that Indian investors are now diversifying their portfolio wisely. Still, the clear winner for November is equities and this has been made possible only by the confidence of domestic investors.
The entire market was supported by local investors.
Overall, the picture of November rests on one thing that the real strength of the Indian market is no longer foreign investors but Indian investors. Continuous buying of mutual funds, steady SIP flows and strong equity confidence have kept the Indian market afloat even in the stressful global environment.
