Market sell-off brings back memories of the 2013 'taper tantrum'

In 2012, India had seen foreign portfolio investor (FPI) flows of Rs 1.3 trillion ($24.5 billion) and in 2013 about Rs 1.1 trillion ($20 billion)

Friday’s rout echo memories of the 2013 market sell-off, commonly referred to as the taper tantrum. Back then, the US 10-year Treasury yields had jumped from 1.60 per cent to nearly 3 per cent after the US Federal Reserve announced that it would taper its quantitative easing (QE) — a bond buying and interest rate easing programme to help the US economy emerge from the 2008 financial crisis. This led to turbulence in the emerging market (EM) pack, which had seen a gush of liquidity thanks to the QE programme. 

The sharp selloff in the domestic markets started in July 2013