Wary hedge fund managers aren't buying into rally in Indian stocks

Avendus isn't alone in bracing for another selloff

Hedge fund managers in India are joining global peers in preparing for another rout in equities, as the rally in local stocks overlooks the pandemic and a dim economic outlook.

The cautious stance has cost some professional investors so far as the S&P BSE Sensex index has rebounded 35 per cent from a March low, helped by a flurry of stimulus measures from the government and the central bank. But the jury is still out with the International Monetary Fund cutting India’s economic growth outlook for the year to March by the most among all major economies.

“Liquidity is covering