Equities and bonds: a tale of two markets
There is no need to panic over the equity euphoriabut the bond market points to the need to be realistic about the macro risks ahead
The equity market has seen its best month before a Union budget in more than a decade. The bond market has had a more rocky ride. The sharp contrast between the euphoria in equity trading rooms and the more circumspect mood in bond trading rooms is in some way a reflection of one of the main messages of the Economic Survey released by the Union finance ministry earlier this week: The story of the Indian economy in 2018 will hover between the themes of revival and risk.