Terming FII outflow as one of the biggest concerns of the Indian stock market, UBS said: "In the absence of severe FII outflows, Indian markets should find support at current levels. However, if we see significant FII outflows, the Indian stock markets can correct further by 15-20%"
This year so far, the Sensex has lost a massive 18.5%. It is down around 21% from November high of 21,108. Besides, the Indian equity market is also one of the worst performing among its global peers this year.
Recently, global brokerages such as CLSA and Morgan Stanley had also cut their year-end target for Sensex.
CLSA had cut its year-end Sensex target to 18,200 from the earlier 19,500, while, Morgan Stanley, reduced its Sensex target for 2011 by 15% to 18,850 from 22,750.