Business Standard BFSI Summit 2026: Strong participation from retail investors has kept the Indian stock market afloat despite heavy selling by foreign portfolio investors (FIIs).
Business Standard BFSI Summit 2026: Strong participation from retail investors has kept the Indian stock market afloat despite heavy selling by foreign portfolio investors (FIIs). Vikas Satija, MD and CEO of Shriram Wealth, told Business Standard’s Praveen Palande at the BFSI Summit held in Mumbai on Monday. He further said that in the previous phase of market decline, such selling by FIIs could have resulted in a decline of up to 40-50 percent.
SIP and domestic investors took over the market
Satija said, “This time the Indian markets have shown a lot of strength. The reason for this is the huge investment coming through SIP and the continuous support of domestic institutional investors. This is when foreign investors are withdrawing money from the market. In the previous market cycles, the amount of money that was withdrawn due to selling by foreign investors, if there had been the same withdrawal this time also in the same circumstances, then the market would have fallen by 40 to 50 percent by now.”
Selling by foreign institutional investors (FIIs) has reached a record Rs 3.08 lakh crore so far this year, putting pressure on major stock indices. On the other hand, according to Amfi data, investments worth Rs 2.51 lakh crore came through SIP in the first nine months of 2026. This reflects the confidence of retail investors in the Indian stock market.
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Investors do not panic due to market decline
According to the CEO of Shriram Wealth, instead of panicking, investors are looking for opportunities in the market. He said, “We are reassured by the fact that even though Indian markets have not performed well on the equity front in the last two years, there are still many investors waiting for the right opportunity and want to invest. There is no panic in the market. I have not met any of the high net worth (HNI) or ultra-HNI investors who are worried about what will happen tomorrow. Everyone is looking at different investment opportunities. And trying to make changes in his portfolio according to the market trend.”
Confidence in India’s growth remains intact
Furthermore, Satija is confident of India’s long-term growth prospects. He said, “With GDP growth rate between 6.5 to 7 per cent and inflation rate between 3.5 to 4 per cent, India still has the potential to deliver double digit returns. India’s long-term growth story is still intact. There is no need to worry about this.”
The major stock index Sensex has fallen by 14 percent so far this year. However, Satija said, “This has happened in the 1990s and 2000s as well. This is nothing new. It’s just that now the cycles of market ups and downs have become shorter and faster.”
Correct distribution of investment is important in the long term
According to Satija, the real basis of returns from the portfolio is the correct distribution of investments over the long term. Responding to a question from an audience, he said, “It is a scientifically proven fact that 95 per cent of the performance of a portfolio is determined by the allocation of investments. Choosing between Fund A and Fund B does not matter that much. In my view, it is more important to keep the allocation of investments right.”
He said that if we look at the long-term market performance, equity always gives returns. However, the amount of investment to be invested in which option and when is very important.
Investors should not panic due to short term news
Satija also advised investors not to panic about short-term news, as they do not have much impact on long-term investment returns. He said, “I constantly tell my clients not to panic after seeing slight movements in the market. If there is any fundamental change happening in the market, then it is important to pay attention to it. But if there is some short-term fluctuation in the market due to some news coming at night, then there is no need to be too worried about it.” He said that for long-term investors, staying in the market may still prove to be a better strategy.
Satija said, “If we look at the 1990s, there was a crisis in the Asian markets during that time. There were concerns related to Y2K in the year 2000 and there was the Lehman crisis in 2008. In 2020, the period of Covid pandemic also came. The performance of the Indian markets in the last two years has also not been very good. It is possible that the American markets may have performed better during this period. Markets like South Korea also got better returns because There was a trend to invest in Artificial Intelligence (AI) companies, but such cycles keep coming at different times, but the importance of investment still remains in the long run.
(Disclaimer: The views and estimates given in this report are those of the respective brokerage firms and analysts. These do not reflect the views of Business Standard. Readers are advised to exercise discretion.)
Source: hindi.business-standard.com
