What is keeping the Indian stock market at all time high despite having no good news around?
The large inflow of funds in Indian Markets from DII, through Mutual funds keeping the markets at all time high.
Look at the below FII/DII Purchase/sales details. The days are the past where we use to fear about FII activity, years before if FII starts selling our markets starts to crack but now a days, FII have been net seller but still our market doesn’t even crack 1% because of very strong inflow of funds from DII.
1000′s of crores has been pumped into Indian equity markets every month through mutual funds. This inflow increased drastically post demonetization.
So the only way, I believe a correction can happen is not because of some PE ratio hitting all time high or crude oil news. It would be because of Mutual funds redemption from Indian investors , if there is some trigger that creates panic among investors, they would first stop SIPs, and few would start redeeming their funds, which would create chain reaction and Mutual funds would be in extreme pressure to sell their holdings in Markets, which could start the sell off.