FII Selling Continues: Will DIIs be able to hold the fort?

The tug-of-war between Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) continues to dominate the Indian market landscape. FIIs are retreating from emerging markets due to higher US treasury yields, whereas SIP-led inflows are providing unprecedented support through DIIs. This domestic strength is preventing a larger correction in the benchmark indices.