New Delhi, May 12 -- How long can mutual funds (MFs) hold up stock indices in India? Inflows into equity MFs in April fell 5% from March to Rs.38,440.2 crore, according to data issued on Monday by the Association of Mutual Funds in India. This despite the 6.5%-odd rise in the BSE Sensex last month.

Such funds have been a major source of strength for share prices as foreign investors have been withdrawing money, but their inflow moderation points to the limits of this heroic role. Household investors may have turned a tad cautious. Understandably so. The conflict between the US and Iran is far from over and the Strait of Hormuz still has hydrocarbon markets gasping for supply.

This is weighing on the global economy, including India's, wh...