India, Dec. 25 -- It is not incorrect to say that not long ago, the Indian stock market lived and died by the mood of foreign investors. Often when Foreign Institutional Investors (FIIs) dumped Rs.3,000-4,000 crore in a single session, the Sensex could fall drastically and the Nifty would bleed. Conversely, a gush of foreign inflows could spark instant euphoria on Dalal Street.

For decades, Indian markets were like the puppets who danced to the tune of FIIs, the puppeteers. During my investment banking days, we vigorously monitored the movements of FIIs. A whiff of tightening by the US Federal Reserve, a jump in US bond yields, or a geopolitical tremor would ripple through Mumbai within minutes. We lived in an uncertain world as far as t...