India’s $2 trillion stock market has been rattled in recent months by everything from high oil prices and tariff threats to a slumping rupee and a sell-off in non-bank lenders. The one thing that’s kept the gloom from worsening: robust flows from mom-and-pop investors.
That backstop is seen extending into 2019 after the bull market over the past five years helped ingrain a buy-the-dip mentality among locals. Consider this: equity funds bought a record 1.18 trillion rupees ($17 billion) of shares this year, negating sales of $4.5 billion by foreigners.
