How can diis(mutal funds and insurance comapnies) keep selling in thousands of crores even in a bull market

@nithin @siva @Sensibull How come mutual funds who are not supposed to hold a lot in cash are selling continuously throughout this previous 2 week rally. It doesn’t make sense how they can absorb losses and still keep selling. I can understand if fiis sell so much because they also have hedge funds who can short too. But in India however there are hardly any big hedge funds. Does anyone have a reasonable explanation for it…

It is because Market always have fair value. It is your perspective that we are in Bull Market, DII might be thinking it is end of bull market or it is time to take profit from some of the holdings.

This is just one of the thousands of reasons why DIIs are selling. We can only guess why they are doing what they are doing.

yes but it does’nt make sense. Irrsepective of our perspective that we are in a bull or bear market. Diis can only sell so much right. For example if i have been selling since the previous 500-1000 point rally then at some point i should cover my shorts right. And my argument is that diis have no option but to cover their shorts because they are by regulation not allowed to have a lot of money sitting in cash.