The 30-share BSE Sensex declined 236.59 points to 57,985.51 after a weak start.
A disorderly tightening of financial conditions could trigger significant redemptions from these funds and contribute to stress in asset markets, the report said.
Among the 30-share Sensex pack, Kotak Mahindra Bank, Titan, Maruti, Asian Paints, Infosys, IndusInd Bank, Tata Steel and ITC were major laggards.
The 30-share BSE benchmark fell 262.73 points to 56,147.23 points in initial trades. Similarly, the broader NSE Nifty dipped 70.4 points to 16,747.70 points.
The challenges are multi-dimensional, and the antitrust, analytical and conceptual framework needs necessary adaptations to reflect digital market complexities, he said.
Falling for the third day in a row, the 30-share BSE Sensex tanked 1,093.22 points or 1.82 per cent to settle at 58,840.79.
The more limited outlook for emerging markets means that the promised improvements in employment and living standards will be harder to realise, at least for large parts of the population.
Inflation number to be announced on Monday could play spoilsports as it is believed that retail inflation in August might have edged higher to 6.9% against 6.71% in July.
Investing regularly in an index fund is the best way to beat the inertia
The moderate inflows into equity funds were compensated by strong inflows into debt funds, which received a net of Rs 49,000 crore against Rs 4,930 crore in July.
This two-part piece examines the prospects for emerging markets including India.
At the interbank foreign exchange market, the rupee opened at 79.80 against the greenback, then fell further to 79.90, registering a decline of 12 paise over its last close.
This is the highest investment made by them so far in the current year.
The ripple effects of this could be seen on Monday in Indian markets, which had a topsy turvy five sessions this week.
During the day, it hit a high of 59,484.35 and a low of 58,666.41. Similarly, the broader NSE Nifty dropped 82.50 points or 0.47 per cent to end at 17,522.45.
During the day, it hit a high of 59,170.87 and a low of 58,760.09. Similarly, the broader NSE Nifty went up by 27.45 points or 0.16 per cent to 17,604.95.
Indian equity markets, which have been driven by strong FII inflows and good quarterly numbers, could see consolidation this week in absence of any major triggers.
The BSE benchmark index had ended 37.87 points or 0.06 per cent higher at 60,298 on Thursday. The Nifty gained 12.25 points or 0.07 per cent to settle at 17,956.50.
Currently, Vedanta Ltd holds 64.92 per cent in HZL, while the government holds 29.53 per cent. Only a 5.5 per cent stake is with the public.
Investors also stayed on the sidelines ahead of the RBI's policy meet outcome on Friday. In choppy trade, the 30-share BSE Sensex ended 51.73 points or 0.09 per cent lower at 58,298.80.