the beginning of CY13.
DIIs continue to remain on the selling side due to redemption pressure because of the recent rally in Indian equities while participation from retail investors has remained stagnant.
“Domestic institutions have taken advantage of the rally to redeem their positions and book profits. Further, retail participation is not huge and brokerage volumes have been more or less stable, which explain why the Indian markets have underperformed the peers,” said Vinay Khattar, vice-president, head research, Edelweiss Capital Markets. Experts said India is in a consolidation mode after a sharp rally last year. “The Sensex is trading at 16 times P/E, but corporate India's earnings expansion will play out in 2-3 quarters. The market has to see real economic traction, such as increase in consumption and infrastructure spending, to sustain the rally,” said Khattar.