I hear this often. Market CAN NOT fall because of SIP flows. Here is a take SIP flows, at the current run rate, avg about 2 Lakh Cr annually. Its a huge number. But let's put a few numbers in prespective. First, Over the past three financial year, Mutual Fund Net Purchases of equity have totaled the followed: FY23: 1.6 Lk Cr FY22: 1.7 Lk Cr FY21: -1.1 Lk Cr FY16 to FY20 avg: 85K Cr In FY24 (Apr-Nov) the MF purchase of equity is 95K Cr. If we annualize this number, it could reach 1.4 Lk Cr by end of the year. This means that, in spite of getting 2 Lk Cr in SIP inflows, the net purchases are lower. This is because of redemptions and marginally due to some cash drag. Meaning, SIP figures ≠ MF purchase of equity entirely. It is a part. Second, The annaulized number of this year, when compared to India's total market capitalizatoin of 345 Lk Cr is less than 50bps of the full MCap and less than 1% of free float MCap. It is too small to make any meaningful difference, yet. Over time, it can contribute to reducing volatility as its size grows, but it won't determine the direction of the equity market. Third, There is a big case study in what additional, passive or forced flows can do. Bank of Japan started buying Japanese equity ETFs in Oct 2010. Since then it has bought equities worth approx $500 Bn vs Japan Equity MCap of $6 trillion or nearly 8% of MCap. Since, it began these purchases for 2 years nothing happened. Post that with the Nikkei 225, firms that made consitent profits and were priced a fair value did exceedingly better than the rest. This means that this free dose of liquidity didn't lift all boats. Finally, Ultimately, earnings and the quality of earnings dictate long-term stock prices.. All types of investors cumulatively - retail, FIIs, Institutional - are eventually only chasing the price unless they have a philosophy. This is one way of looking at it. I am sure there are more angles that I may have missed and need to be explored.