Pace of flow into equity unsustainable as investors cut leveraged positions

The equity market hasn't yet found a bottom and it is still not a time to bottom fish

Foreign portfolio investors (FPIs) are selling and cutting their exposure to emerging markets (EMs) given virus fears and crash in oil prices, as they are unwinding their aggressive bets and India is no exception.

Generally when the oil price crashes, India tends to relatively outperform peers. This time the situation is bit murky for India given weak macro already. Brent crude oil at $30/barrel means a nearly $42 billion (1.4 per cent of GDP) boost to India’s economy, according to our macro strategist. This can help government revenues as government may retain most of the gains by increasing taxes. However, the