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Since the Lok Sabha elections began on April 19, foreign institutional investors (FIIs) have liquidated Indian stocks worth a total of Rs 37,700 crore, which has caused discomfort on Dalal Street. India VIX has seen a 67% spike in value. DIIs, on the other hand, have spent Rs 60,000 cr, which is a significant amount notwithstanding the volatility of the market.

Since the beginning of voting for the Lok Sabha elections on April 19, foreign institutional investors (FIIs) have dumped Indian stocks worth around Rs 37,700 crore. This translates into an average daily sell-off of Rs 1,800 crore over the course of the last 21 trading sessions.

India's fear gauge, the VIX, has also shot up by almost 67% to new 52-week high levels, reflecting the increasing uneasiness on Dalal Street regarding the likely outcome of the Lok Sabha election. New 52-week high levels have been reached.

The fearless desi lads are not only holding their ground but also purchasing the dip nonstop without batting an eyelash, and they are unfazed by the fact that both India VIX and FII are experiencing sales.

Over the course of the past 21 trading days, domestic institutional investors (also known as DIIs) have spent almost 60,000 crores of rupees. At the end of the month of April, mutual funds were sitting on a cash pile that was as large as 1.36 lakh crore, and as a result, they have sufficient dry powder to absorb any sell-off that may occur from investors from other countries.

On the other hand, why are FIIs selling? It is a widely held belief on Wall Street that foreign institutional investors (FIIs) do not wish to expose themselves to any election-related risk at a time when the market is close to reaching all-time high levels. While the market capitalization of all equities listed on the BSE has already surpassed the $5 trillion barrier for the very first time in history, the Nifty is only one lucky day away from surpassing prior records.

According to those who are familiar with the market, foreign institutional investors do not want to take any chances because the Sensex had a 15% drop in a single day during the Lok Sabha elections in 2004, when the UPA suddenly came into power.