Dalal Street may have less support from domestic investors in 2019

Domestic investors have been buyers of Indian stocks since 2015

The good news for Indian equities is that despite global money getting tighter in the past 6-8 months, foreign portfolio investors (FPIs) remain optimistic on India.

Analysts at Nomura reckon India and Indonesia to be Asia’s new rising stars. A Mirae Asset report states despite possible short-term volatility, their outlook on India remains positive amid global trade tensions.

Yet, global brokerages feel a prolonged period of costlier money could prompt foreign investors to pull out of emerging markets, including India. In other words, the selling displayed by FPIs in 2018 may continue next year. 

The year 2018 was the first time FPIs turned