This does not imply that #FII actions are insignificant or that we do not need them. Their sentimental and psychological impact on the market is often overlooked by the data.

The following slides illustrate the correlation between FII activity as a % of BSE mcap (considering the sign of inflows/outflows) and Nifty 50 returns.

Since 2020, this correlation has increased significantly to 0.65.
#FII