Promoters, PE firms sell $30 billion worth of Indian stocks till June. Is this a red flag for retail investors?

Many stocks are sold when the IPO lock-in period ends. The PEs have a fund life. They raise funds and invest them during the first 2-3 years of a fund’s life and then nurture or hold the investments for a 3-5 years and then exit them post that over the last couple of years of the fund’s life. They have to return money to their LPs. That is one reason why PEs sell. Promoters, typically, would sell when their stock is overvalued,” said Vikas Gupta, CEO & Chief Investment Strategist – OmniScience Capital