The market has not paid heed to many moving macro factors recently and maybe if it goes on we will decide that it does not matter, but there are real economic and financial losses
involved. Like the relentless fall of the rupee does hurt Foreign investors in Indian debt. And rising crude prices are hurting margins of OMCs and the trade balance. And on and on.
Rising bond yields in India are an additional level of risk given corporate debt levels are elevated. To make matters worse lending or new loans will get more and more difficult as lenders become more risk averse. The economic winter is here, and been around for many years, its effects on the economy
have been postponed by repeated inflationary measures but that only creates a bigger bubble. The real bull market will start but not now. Only after the corrective actions are set in motion. Some of them will be set in motion by Mr. Market himself. It is about time.
