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"There is an uncertainty among the foreign investors, especially FIIs given the adverse sentiments in the aftermath of the Mumbai terror attacks...There may be further flight of the FII money from the market in the coming days," Global rating agency, Standard & Poor's Managing Director and Regional Head, Ravi Mohan said.
However, foreign investors are likely to come back once there is normalcy by way of right policy measures from the central and state governments to enhance the national security," he said.
"Investment sentiments of FIIs will depend on the policy measures from the central and state governments. On the FDI side, I don't expect any slow down as the capital demand is very high in different sectors," Mohan said.
Nearly 200 people were killed and around 350 injured in a spate of terror attacks that rocked the commercial capital for three days, exposing the vulnerability of the world's largest democracy to terrorist operations.
Experts said those sectors like tourism, hospitality and automobile may also feel the heat of the negative sentiments after the recent attacks but is likely to regain the momentum in the short to medium term in line with the improving domestic situations.
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FIIs are not that foolish. Such incidents can happen in many countries. India has the population and the demand. Its GDP is double of what it is as there is a cash market existing in India. With a few reforms in Taxation, the growth can easily touch 10 % but government is just curbing excessive growth due to inflation. After elections, Indians need not worry. FIIs can go to no other country in the region. Even if they plan to go to gulf, they just do not have the demand.... All the gulf banks are reeling under Eco crisis, (oil could go down to 10 dollars soon) their only source of income... India is a attractive market for 100 years atleast.....