MUMBAI, Dec. 17 -- There was a time when heavy foreign investor selling could rattle Indian equity markets. That dynamic is no longer a given.

Speaking at the annual Mint BFSI Summit, held last week, DP Singh, deputy managing director and joint chief executive officer of SBI Mutual Fund, said that while foreign investors may be selling in parts of the market, they continue to deploy capital through initial public offerings (IPOs) and other asset classes.

After three straight months of selling since July, foreign investors briefly returned as buyers in October and November, pumping Rs.10,167.46 crore and Rs.332.76 crore, respectively, into Indian equities. That respite proved fleeting. By 15 December, foreign institutional investors (FII...