While most emerging markets continue to struggle, India has gone from strength to strength in recent weeks. The main stock market, the Sensex, is up 6% this year and has hit a new record high above 22,300.
One reason that foreign money has returned to the market is that India “is doing its homework”, says Abheek Bhattacharya in The Wall Street Journal. Investors took fright at the country’s big current account deficit last year, but that has greatly improved now, thanks partly to curbs on gold imports.
Inflation is falling, so the central bank should have room to reduce [...]
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