While the benchmark Sensex fell by nearly 4 per cent, stocks with the P-notes exposure fell by 5-13 per cent on Thursday.
Brokers point out that most of the hedge fund managers and FIIs want to play it safe before the regulatory policy on investment thought the PN route is clear.
Sources say even after liquidating their positions, mostly in derivatives markets, foreign players are unlikely to take their money out of the country until the guidelines are clear.
