India’s surging mutual fund SIP culture may be quietly tightening the noose around the rupee, by giving foreign investors a smooth exit route from the expensive equity market, Jefferies has argued in a new strategy note.
In a report decoding the pressure on the Indian rupee and "the downside of SIPs", Jefferies argues that the current bout of rupee weakness has little to do with the usual villain, the current account deficit (CAD), and almost everything to do with a collapse in capital flows driven by equity market outflows.
