They are the movers, as Indian retail who earn 5 lakhs per month to 10,000 per month have many venues to invest, and equities are just one among them. So when the big money, which in most of the cases is also the smart money, comes in, the participation increases, just because the prices are going northward. Indian retail participation may have been acting as cushion for sometime now, I am not too sure if this can be considered as permanent. Participation without some understanding and some objective cannot be relied upon, so the current scenario may not be a structural shift. If it is, then it is beneficial.
FIIs may continue to invest, as a lot of things are going in favor of India, stable government, reforms, formalization, capex, GDP forecasts, younger demographics, so they may continue with their investments, if not increase, and if they find similar opportunities elsewhere in other Asian geographies, they may cut down.
Come to think of it, if indeed FIIs decrease their presence, it appears, valuations will come down, so investing should be done considering the valuations too.
Just some thoughts.
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