Foreign hand in Indian stocks

...........In light of this FII dominance, the RBI governor is right to worry about the impact of capital outflows. The herd-like behaviour of global capital is well known and anything that triggers a stampede out of India is likely to cause significant market drops. This is demonstrated by the fact that some of the largest falls in stocks have been in the three periods where FIIs became more circumspect in their enthusiasm for Indian stocks. The first was during the global financial crisis in 2008, the second during the acute phase of the European sovereign debt crisis in 2011, and the last was the recent hiccup........

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