Inflation Takes its Toll

A year ago, the story was totally different. We were looking at double-digit GDP growth, low inflation, a bull market, low interest rates, plans for massive investment in infrastructure and a stable political regime. Everything has changed. The market has tanked by over 35% from its January 2008 peak of 21,207. In around 6 months it has fallen to 13,000 levels. Instead of growth, it is inflation which is at double digits and shows no signs of abating. The RBI is tightening liquidit