• Domestic equity inflows during 2024 so far are a staggering $7bn+/month
• This would be nearly 2x the previous high and more than 3x YoY as domestic investors position for strong election results
• At ~20% of financial savings, and with the 'predictable' flows to equity at less than half, risk of domestic flow reversal is rising
• Potential regulatory action on derivatives could be a trigger
• FPIs would likely buy the dips limiting the downside on the large-caps
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