in intra-day trading against the US dollar on August 22.
India and many other emerging markets have been negatively impacted by global uncertainties.
The negative perception, according to ASIFMA, is a combination of many factors including generally better than expected economic performance by the developed economies compared to the emerging nations.
Besides, there is growing expectation that the US Federal Reserve would reduce the pace of its purchases of American treasuries.
"This in turn, has re-directed flows away from emerging market countries and towards the developed world - as a consequence, India too has been caught in this 'cross-fire," ASIFMA said.
Over the years, India has been looking to attract more foreign funds into the country, both FDI and FII.
"However, policies such as the adoption of 'retro-active' measures, be it in the field of taxation (such as GAAR) tend to be viewed negatively by international investors, FIIs and other market participants," ASIFMA said.