The SIP money coming every month in truck loads serves two purposes.
1. In large caps, it absorbs the FII selling. That's why you don't see the Nifty crashing but, instead, largest cap stocks not performing for years. If this was pre - COVID, the Nifty would be 18K.
2. In small/mid caps - which is where most of the SIP and FII money is going - it inflates the flavour of the month which, for the past few years, has been AI/data centers. Anything directly or indirectly related gets bought into. Bubble? Who knows.
So we're in a bull and bear market. The large caps are in a bear market which won't get over soon. The s/mid are in a bull market which also won't get over soon because the money keeps coming in.
There's one problem though. There's a lot of churn happening. Mutual fund investors track portfolios month to month and they chase performance. 12-15% has become embedded here. Anything less than that gets switched out of.
Let's see till when this goes on. US Bond yields have crossed 5%, oil will remain unpredictable. We are going into rate hikes which also seems priced in. Everyone is waiting for a big crash since last year. It's not come so far.