Dancing to FIIs' Music

2008 was an experience that few investors, traders and fund managers are likely to forget for a long time to come. They got hit from a direction that they did not research enough or totally ignored, that is, the advanced economies’ precarious fundamentals. In India, in one fell stroke, the foreign institutional investors (FIIs) withdrew almost totally from the market, felling it from a high of 20,873.33 points at the beginning of 2008 to a low of 8,509.56 points in October, a fall of 59.23 per cent.

This article was originally published on August 24, 2009.