By Sheetal Kumari | March 3, 2025

MC Markets | October 23

What’s Supporting Indian Markets at Higher Levels? Here’s What Jefferies Say 

Global brokerage Jefferies says mature domestic investors are playing a key role in keeping Indian markets strong, even as Sensex and Nifty hit record highs.

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Sensex and Nifty extended gains for a sixth straight session on October 23, supported by steady domestic inflows and improving investor sentiment.

Markets on a Winning Streak

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Jefferies analysts, led by Mahesh Nandurkar, said the growing maturity of mutual fund investors and rising non-fund domestic flows are helping markets stay resilient.

Mature Domestic Investors in Focus

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According to Jefferies, mutual fund inflows (excluding ETFs) averaged $4.3 billion per month in 2025 — about 58% of total domestic inflows.

Mutual Fund Inflows Stay Steady

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Non-fund institutional and pension fund investments averaged $2.9 billion per month, forming nearly two-thirds of total domestic inflows, Jefferies added.

Non-Fund Flows on the Rise

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Investor holding periods are rising — 30% of SIP assets are now over five years old, up from just 10% five years ago. Jefferies says this reflects growing confidence.

Longer Holding Periods Show Maturity

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Markets are also gaining from optimism over a possible India-US trade deal, renewed foreign fund inflows, and buying in IT stocks.

Global & Local Boost

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Moneycontrol advises users to check with certified experts before taking any investment decisions.

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