He explained that FIIs have scaled back their investments in Indian stocks, reaching a 12-year low, driven by factors such as high valuations, weaker earnings, and concerns about global inflation. On the other hand, domestic mutual funds and retail investors have been steadily increasing their stakes in the market.

Anirudh Garg, our Fund Manager at Invasset PMS, said this trend highlights structural challenges in the corporate sector. Economic pressures and industry-specific headwinds are weighing on profitability, with financial institutions and consumer sectors particularly impacted by demand shifts and operational pressures. Moving forward, companies must address these issues to restore investor confidence and drive market recovery. Investors should stay alert, focusing on selective opportunities amid ongoing uncertainty.

He further explained that Foreign Institutional Investors (FIIs) have reduced their holdings in Indian stocks to a 12-year low due to high valuations, weak earnings, and global inflation fears. Meanwhile, domestic mutual funds and retail investors have increased their stakes.

Anirudh Garg of Invasset PMS anticipates the IT sector to benefit from structural trends like AI, automation, and digital transformation, further enhancing its potential for recovery.

As overvalued stocks with high price-to-earnings ratio correct to more reasonable levels, investors with cash reserves can buy at attractive prices.

Concerns over the escalating conflict in the Middle East have raised fears of potential disruptions to crude supplies from the top oil-producing region, pushing prices higher—a situation that impacts net importers like India.

Indian shares are surging despite Hindenburg’s report accusing the conglomerate of fraud.

In the Budget, FM had shifted tax liability on buybacks from companies to shareholders

Overseas buyers net invested $5.9 billion into domestic stocks in September alone so far, beating EM peers.