Petro-dollar funds may Offload more equity

MUMBAI: While brokerages are encouraging retail and HNI clients to buy into stocks, a few savvy traders are not betting on a big bounce on Dalal Street, fearing that selling by Middle East-based sovereign wealth funds (SWFs) could intensify in the days ahead.

A sharp crash in crude prices and no bounce in sight have stemmed the flow of 'petro dollars' to large funds backed by oil-rich countries and there is an urgency among them to sell foreign equities given the rut these countries are in. Chances are that they may offload further.