One might have expected investors in the Indian stockmarket to be worried. Pushed by the high price of oil, inflation has been rising. On October 26th, the central bank, the Reserve Bank, responded by edging up its "repo" rate by 0.25 percentage points, the first such increase for four years. The Reserve Bank has also cut its GDP-growth forecast for this year by 0.5 percentage points, to 6-6.5%. The government, led by the Congress Party, is a further concern. It relies on the parliamentary support of Communist allies, not known for their market-friendly policies.
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