Foreign investors have pulled a massive $1.17 billion out of India in the last 12 trading sessions, according to the Wall Street Journal.
There’s been a significant selloff since the start of 2011, as investors flee over inflation fears.
It’s hard to understand where they are coming from, with the central bank plotting more rate hikes in the near term, however.
But even if there is a short-term selloff associated with the rate hikes and rising inflation, the year may still be bright. A Reuters poll showed that the BSE Sensex would be up 20 per cent by the end of 2011.