According to assurance, tax and advisory firm Grant Thornton, corporates in the country announced 458 deals in the January-November period amounting to $26.76 billion.
This was a decline of 21 per cent over the year ago period in value terms.
"The deal activity currently remains moderate, which matches the overall economic sentiment," Grant Thornton India LLP Partner Transaction Advisory Services Raja Lahiri said.
While certain regulatory steps being taken by the government to attract more FDI in sectors such as retail, aviation, broadcasting and telecom are positive signals, the investors, however, are adopting a cautious approach, he said.
"As a result, deal-making is taking longer with more intensive due diligence and evaluation of regulatory risks," he said.
The month of November witnessed M&A and PE deal activity worth $2 billion, which is similar to the levels seen in September and October 2013.
Sector-wise, real estate attracted deals worth $513.23 million -- the largest percentage of the total deal tally in November (39 per cent), followed by IT & ITeS (USD 225.18 million, 17 per cent), pharma (USD 193.14 million, 15 per cent), banking and financial (USD 175.16 million, 13 per cent) and telecom (USD 80 million, 6 per cent).
The top five M&A deals accounted for 63