Cross-currents affecting India

In the current emerging markets turmoil, India is seen as a safe haven

Global EM (emerging markets) are now officially in the bear market territory. The MSCI EM index is down 20 per cent from its January 25 peak. The EM currency index is down 16 per cent from its peak versus US dollar in mid-February and the Emerging Market Bond Index (EMBI) spread has widened 101 basis points since early February.  EM assets remain in a tough spot. A strong dollar, weakening and less synchronised global trade/growth and rising yields all spell trouble. Chinese data also continue to soften, and the renminbi remains vulnerable. While we have started to see a greater