India Markets: Smart money leaving

FII's may not have the best track record recently, but they do not sit passively. Financial markets have become a war zone...and in a war zone, there are only casualties. FII's have been no different although some have suffered less by being decisive.

Now, they are deciding to leave India...and there is relentless selling...and more to come.

In a war zone you have three options:

• Fight...
• Passive Resistance
  
• Flee

Investors in India are faced with poor economic prospects, a likely fractured mandate from the elections, poor security situation...and their response is the opposite of Passive Resistance...it is called "Active Fleeing".

Equity markets are getting smashed...oh, by the way all the global cues are positive ( what nonsense)...expect the Rupee to get pummeled.