Is this the start of the double-dip?
Is this the start of the double-dip?
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Analysts have been warning for months about overvaluations, the clogged initial public offering pipeline, rising interest rates and the withdrawal of fiscal sops in the Budget. Those are all valid concerns, but equally valid has been the recovery so far.
Will the tightening of liquidity affect markets? During the last cycle when markets fell on fears of the first round of rate tightening in the US, conditions in India were worsened due to a Left-supported government coming to power and there was a crash in all markets, including India, in May 2004. It wasn’t until October 2004 that the benchmark Sensex index, was able to get back to the highs it reached in May. This time, relatively speaking, India is much better placed than most of the world and it’s unlikely to take that long.
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