We All Know What’s Going On: The Indian Market Is on Thin Ice

It’s the same story every day—FIIs are offloading stocks like clockwork, and DIIs keep soaking it all up. We all know the DIIs are just mutual funds using our money, not theirs. This isn’t some brilliant buying strategy; it’s them propping up the market to keep things from collapsing. And don’t get me started on valuations. We’re seeing companies with PEs north of 300 and even 1,000 in some cases. It’s absurd, and yet DIIs are still buying, giving FIIs their clean exit. We all know this game. Let’s be real about what’s coming: 1. DIIs can’t keep this up forever. 2. The second sentiment shifts or redemptions start piling up, there’s going to be a cascade of selling. 3. FIIs, having cashed out at the top, will swoop back in when the dust settles—because they always do. 4. Retail investors? Well, you know who gets left holding the bag. We’ve seen this movie before, and the ending doesn’t change. The only question is when the cracks will finally show.