Without strong SIP inflows, markets could have fallen 40-50%: Vikas Satija
Indian markets moved lower in a mutual funds development.
· Business Standard Mkts
Vikas Satija, MD & CEO, Shriram Wealth, said that this kind of FII selling in previous cycles of market downturn could have resulted in a 40-50 per cent drawdown.
The analysis
This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it.
Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.
Market context
- A market-wide development: it reaches beyond any single stock.
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