Mumbai, Aug. 25 -- Foreign institutional investor (FII) capital flows will remain the primary determinant of Indian market direction, even as domestic liquidity continues to absorb persistent foreign selling, said Shrikant Chouhan, Executive Vice President and Head of Equity Research at Kotak Securities, in an exclusive interview with ANI News on Tuesday.

While addressing the persistent selling by FIIs over the past two years, Chouhan attributed the movement to surging bond yields in developed economies.

"US 10-year yields moved up from around 3% to 4.5%-4.7%, offering very solid returns. That is why FIIs preferred US 10-year and 30-year bonds over emerging markets where volatility and risk are higher," Chouhan explained.

He noted that...