Domestic institutional investor

Indian mutual funds, insurance companies, pension funds and banks investing in the domestic market.

The structural change of the last decade is the growth of monthly systematic investment plans, which deliver a steady flow into domestic funds regardless of market direction. That flow has repeatedly absorbed foreign selling that would once have moved the index much further.

The consequence for a long-term investor is that the buyer of last resort in Indian equities is now domestic and habitual rather than foreign and tactical.

Watch the monthly flow numbers alongside the foreign ones.