Feroze Azeez highlights increasing domestic support through mutual fund inflows and SIPs, which could bolster the Nifty to 26,350 despite a sideways market, signalling a constructive outlook driven by local liquidity.
Indian markets may be moving sideways for now, but the tone is turning more constructive as domestic money continues to flow in, according to Feroze Azeez, chief executive of Anand Rathi Wealth. Speaking in a Business Today video, Azeez said the Nifty could climb towards 26,350, with mutual fund buying and steady systematic investment plan, or SIP, inflows offering support. He also pointed to the sizable cash holdings sitting with mutual funds as a potential cushion if foreign investors resume selling.
That domestic support has been visible in the numbers. Business Standard reported that Indian mutual funds posted a record net equity investment of ₹4.6 trillion in 2025, extending a run of positive annual equity flows. In May 2026 alone, equity funds still attracted net inflows of ₹22,907 crore, marking the 63rd consecutive month of positive contributions, according to INDmoney. Outlook Money said mutual funds accounted for 65% of domestic institutional investor inflows in fiscal 2025-26 so far, underscoring how central they have become to the local market.
Even with the Nifty largely stuck in a narrow range, the broader market has held up better, suggesting that domestic participation is continuing to offset weakness elsewhere. Azeez has argued elsewhere that investors should not overreact to recent trends, warning against recency bias and saying diversified equity funds have historically done better than index SIPs over the long term. In an interview with Livemint, he said only a small share of index funds beat the Nifty 50 between 2018 and 2025, while more than half of diversified equity funds outperformed.
Azeez has also framed SIPs as more than a market product, describing them as a core savings habit for Indian households. The Economic Times reported that he sees a major shift in household savings towards financial assets and expects domestic flows to remain a key driver of equity demand in the years ahead. For long-term investors, the message is clear: as long as local liquidity stays firm, the market may have enough fuel to extend its advance even if overseas investors remain cautious.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
