India’s Markets Break Away From the ‘Fragile Five’ Pack

Wall Street Journal | September 6, 2017


Markets, currency rebound to outperform large economies in surge of optimism

MUMBAI—India’s stocks and currency have outperformed most large economies in the past six months as renewed confidence in the country’s relative economic and political stability have made it an emerging-market haven in uncertain times.


The firm standing of the ruling Bharatiya Janata Party, good economic fundamentals, a prime minister with an appetite for reform and a potential demographic dividend from a young population make the country an attractive bet, bullish investors say.


It is a turnaround from four years ago, when Morgan Stanley bundled India together with Brazil, Indonesia, South Africa and Turkey as one of the “fragile five,” because of its weak currency and economic fundamentals.


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