New Delhi, July 10 -- The Indian stock market has seen a sharp divergence between foreign portfolio investors (FPIs) and domestic institutional investors (DIIs) so far this year.

This year, FPIs have withdrawn nearly Rs.2,59,115 crore from Indian equities till 10 July, as per NSDL data. Domestic investors, led by systematic investment plans (SIPs) have contributed almost Rs.4.8 lakh crore, absorbing the FPI selling pressure.

The growing domestic participation has undoubtedly strengthened India's equity market.

However, experts underscore that it would be premature to assume that this support can completely offset foreign capital outflow.

"The retail base has not yet been tested through a prolonged and meaningful market drawdown. A mar...