Lead Story

Hush on the shop floor

With significant excess capacity plaguing the industry, recovery in investments will be slow and painful

The Indian equity market has been on a tear of late, significantly outperforming other asset classes in India as well as other equity markets globally. There are three reasons for this strong performance: the first, a return to risk-taking across the world as well as some other economies going out of favour; the second, a bottoming out of the Indian economy; and the third, the historic electoral verdict that is likely to support market valuations for several months. Even if market commentators seem to be focused only on the last of these, all three are equally important, particularly for forward-looking analysis.