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Predicting FII flows akin to predicting mood swings: DSP MF CIO Anish Tawakley

A quarterly results development with market-wide reach.

· Economic Times Markets

At any point in time the market is influenced by multiple factors and it is impossible to attribute performance across those factors. I focus on earnings rather than flows. I would caution anyone against basing investing decisions based on flows for three reasons.

This is an Index / institutional flows event. Passive and institutional flows move price independently of fundamentals, and around rebalancing dates they dominate it.

Because the driver here is macro rather than company-specific, the read-through is to index-level positioning rather than to any single name — correlations tend to rise when the whole market faces the same signal.

  • This is a market-wide development — its reach goes beyond any single stock.