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Since valuations remain high even after the recent pull back and US bond yields are attractive ( the US 10-year bond yield is around 4.46 percent) FIIs are likely to press sales so long as this trend persists.  It would be irrational to expect the FIIs to buy aggressively when the US 10-year bond yield is around 4.46 percent and the dollar index is above 105.
Even after the recent correction, Nifty is trading around 20 times FY 24 earnings, making India the most expensive market in the world.
FII selling can be an opportunity for domestic investors who don’t have to worry about the dollar index and US bond yields. When high quality stocks in performing sectors like banking and capital goods decline, these can be bought for handsome long-term gains.
In the mother market S&P 500 is down 4.2% so far in September. If this weakness in S& P persists, that can weigh on Indian markets, too. Investors may wait and watch for clear trends to emerge."