Global investors are cautious on India because of expensive valuations, but intrigued by domestic households buying stocks, Swiss brokerage UBS said on Tuesday.
They are also questioning the near-term sustainability of the bets being taken by the retail investors, it said in a report, adding that the net outflows by foreign institutional investors (FIIs) are indicative of the same views.
It said in the ongoing September quarter, FIIs have so far pulled out USD 1.1 billion on a net basis as against inflows of USD 0.8 billion and USD 7.3 billion in the preceding two quarters.