FII selling and a weak rupee are trapping India markets in a vicious cycle

Global sentiment swings could decide the next rebound

Analyst Sandip Sabharwal warns that foreign selling is driving a currency-stock spiral even as domestic earnings hold up. Strong corporate results and steady SIP inflows are acting as anchors, but retail trading has cooled. He suggests patient investors could benefit from a rebound once global sentiment improves, flagging Indian Hotels as a long-term opportunity.