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: participants still feel that the domestic source of liquidity led by the Indian mutual fund industry and other financial institutions are no match to foreign investors who were the major drivers behind the bull rally in the past four years.
Shah added: “Theoretically, we can say that the mutual fund industry could play a more active role in the market and support it. But at the end of the day they are not here for supporting the Indian stock market, but to generate return for their investors.”
Overall, now there is a consensus view emerging among market participants that this kind of trend reversal will continue to prevail over the Indian market as long as foreign capital has a major say in the Indian market. Global markets are closely getting integrated as never before and any adverse development in the global financial system will have a ripple effect across markets, including India....
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