EQUITY - Foreign exodus forces India's bulls back into their box

January may well have been the worst month on record for India-focused investors, with foreign institutions selling US$7.4 billion in securities. Last year's surge in equity prices, inspired in part by chest-beating about the inevitability of the country's economic miracle, had become unsustainable. More worrying still, the government is increasingly tampering with rules at a time when markets are wobbly and margins are thin. Elliot Wilson reports.