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Below the Quote on AMFI by Sumit Singhania, Head of Research- Bajaj Broking

October’s rebound is best read as a liquidity swing, not a broad shift in investor appetite. Debt flows reversed from Rs 1.83 lakh crore of outflows to Rs 1.13 lakh crore of inflows, which reflects corporate and institutional treasury money returning to liquid, overnight and money market funds after September’s outflows. The more durable signal is in equities. Net inflows of Rs 32,993 crore, a decline of about 14% from September, were still healthy, and they roughly matched the Rs 34,843 crore that foreign investors pulled out of Indian equities in October. Domestic investors, backed by SIP contributions of Rs 32,160 crore, are absorbing foreign selling for now. The key things to watch are whether liquid-fund inflows hold up beyond the quarter-end cycle, and whether equity inflows stay above Rs 30,000 crore while FPI selling continues.

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