Fund managers are waiting for clarity on the market direction, reflecting in the cash holding of active equity funds, which has been trending around 4.8 percent over the past six months.
Benchmark indices Sensex and Nifty 50 have fallen around 7 percent over the past six months as of February 17, 2o25, owing to several global factors, foreign selling and concerns over earnings.
Global macroeconomic uncertainties and concerns over a tariff war in the second term of US President Donald Trump have further dampened sentiment. The rising US bond yield and a strengthening dollar, both have led to capital outflows, with foreign investors shifting toward safer returns in developed markets.
