| Yashwant Sinha | ||||||
When international rating agencies announced a negative outlook on India’s sovereign rating in early August, the equity and bond markets barely reacted.
That was not because they disagreed with the assessment but because the rating actions confirmed what the market already knew. Sunil Gulati, head of investment banking at ING Barings, says: “Second-generation reforms have simply not taken off.”
An economist at a large US investment bank adds: “The market [index] is down from 6000 to 3300; that’s a verdict on economic reforms.”
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