Foreign institutional investors have gone a bit slow when it comes to selling in the cash segment
Fund managers say festive period will be critical, analysts cite NBFC liquidity crunch for dismal state of affairs
Combined market cap of listed firms down Rs 14.8 trillion
Inflows cross $10-bn mark for 3rd consecutive year
FIIs also don't seem to be buying the capex cycle revival story as they have cut stake in at least 17 capital goods companies.
FIIs were net buyers to the tune of Rs 2.93 billion, while domestic investors pulled out Rs 8 billion
The reversal of foreign flows comes after two months of heavy sell-off amid surging US bond yields and dollar
So far this month, FIIs have invested around $750 million, each, in equities and debt market
Government securities, followed by corporate debt, will continue to remain most attractive for FIIs
But the government has left prior period cases open for interpretation
A lot hinges on domestic investors for Indian equities to hold up
Debt raised by infra cos escalated as margins shrank with the ballooning cost on account of delays
S&P BSE Sensex and NSE Nifty50 index down by 4.7% and 5%, respectively during the same period.
Akash Singhania, Deputy Chief Investment Officer, DHFL Pramerica Asset Managers, speaks with Samie Modak
Narrowing of yield spreads between US and India bonds triggers outflows
Other than India, overall foreign flows into regional markets such as South Korea, Taiwan and Indonesia have been strong this year
After major single-day market falls in past, they've been net sellers for following 2-6 weeks
In 2016, FII flow of $2.8 bn is less than that of Brazil, Taiwan and Korea but the trend could reverse
They have been net buyers and sellers in alternate quarters since March 2015, causing volatility in the market
According to data from National Securities Depository and Sebi, FIIs have put in Rs 20,686 cr ($3.08 bn) so far during the current month