JP Morgan analysis: India’s ‘bull run’ in jeopardy

Indian stock market has moved up sharply since June when Pranab Mukherjee quit as finance minister.

NEW DELHI: US investment house JP Morgan has warned a bull run by Indian stocks is in jeopardy with New Delhi failing to deliver on promised reforms and economic indicators deteriorating. The Indian stock market has moved up sharply since June when Pranab Mukherjee – perceived as hostile to economic reforms – quit as finance minister. “The first volley of reforms was expected after the presidential poll in late July. But that has not been the case,” JP Morgan said in a report late Friday. But the government’s coalition allies continue to be reluctant on key reforms while investor concern is mounting with parliament paralysed over potential corporate corruption cases the report said. Warnings this week by the central bank that the government may miss its budget-deficit target amid higher spending on fuel subsidies and sharply slowing economic expansion are also fanning investor concern, analysts say.

Published in The Express Tribune, August 26^th, 2012.