On February 28, Indian finance minister Yashwant Sinha announced an annual budget that should have given a strong push to economic growth. Tax cuts, a sharp cut in interest rates and a raising of the ceiling on foreign portfolio investment in Indian companies should have given the stock markets the boost they badly needed.
The markets cheered, rising 5% in two days. On March 2, though, the Bombay Stock Exchange 30-share Sensex index dropped like a stone, losing 4% in a single day.
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