Local Algos Dominate Indian Stock Market
  • Saba Ashraf
  • Jul 01 2013

In June, FIIs pulled more than $7 billion out of India, of this $2 billion exited equity markets. While previous waves of FII selling have been accompanied by significant corrections, this time there is a clear divergence between the relative strength of equities and the panic seen in currency markets. This is because while FIIs set the market mood, local algorithmic high-frequency traders rule the Indian stock market.