The Nifty50 has fallen by about 10 percent so far in April, partly weighed down by dismal results from India Inc. in March quarter and muted management commentary.
The government's window to decisively push its reforms agenda forward seems to be closing. Foreign brokerages are divided on just how much success the government will taste and what growth India will realistically achieve in the coming quarters.
Foreign brokerages are asking the government to urgently address the concerns surrounding the proposals of General Anti Avoidance Rule (GAAR) or face disorderly unwinding of FII holdings.
Foreign brokerages are complaining at recent Indian provisions to tax indirect investments and combat tax evasion, saying they are couched in ambiguous language and could also be used to target overseas market investors, risking a sell-off in markets.