The strong growth story is there, inflation is somewhat stickier as well, and the Federal Reserve themselves are suggesting that with the fiscal policy side remaining very loose, monetary policy may need to be tighter to offset that support.
Foreign investors pulled out a significant $751.4 million from Indian equities on March 2, ending a strong February inflow. This reversal, driven by escalating Middle
Indian stock markets, NSE and BSE, resumed normal trading on Wednesday, March 4, following the Holi holiday observed on March 3. This comes amidst heightened
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