Domestic Institutional Investors (DII) continue to show robust monthly flows into equities
FinTech BizNews Service
Mumbai, October 13, 2025: Foreign Portfolio Investors' (FPI) holdings of Indian equities have dipped further, indicating a cautious approach, says Kotak Mutual Fund’s latest market outlook for October 2025.
Below are the key insights across the macro economy, equity, and debt markets:
Macro Economy:
· The global economy is projected to slow down in 2026, with the world GDP growth forecast projected at 2.9%.
· The US economy rebounded in the second quarter of 2025, with a significant drop in imports contributing to GDP growth.
· Fitch has lifted India's FY26 growth forecast to 6.9% due to strong demand.
Equity:
· India has been a key underperforming market in the past year, with the Nifty 50 Index trading close to its long-term average.
· Foreign Portfolio Investors' (FPI) holdings of Indian equities have dipped further, indicating a cautious approach.
· Domestic Institutional Investors (DII) continue to show robust monthly flows into equities.
Debt:
· The Reserve Bank of India (RBI) has taken active measures to maintain system liquidity, including policy rate cuts and changes in monetary policy stance.
· The RBI has lowered its FY26 inflation forecast to 2.6%, indicating a benign inflation environment.
· The bond market is expected to benefit from the dovish stance of the Monetary Policy Committee (MPC) and potential rate cuts by the Federal Reserve.
