India’s irrational exuberance

The return of bullish sentiment in Indian stocks could be premature.

After a shaky summer, the bulls have returned to India. The benchmark Sensex Index gained nearly a fifth between late August and early November. Yet as India's finance minister warns, this looks like "irrational exuberance".

The rebound was based on the US Federal Reserve delaying the start of its taper, whereby it would reduce the pace of its money-printing programme.

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