India released its budget this week, but global markets remained unimpressed by its reforms — despite the document appearing to deliver on all fronts.
The annual budget from the world's second-most populous country detailed a combination of reforms related to spending, bank recapitalization and fiscal consolidation. But the Bombay Sensex stock index dropped 152 points Monday. On a year-to-date basis, India is down 12 percent, though that's better than a still-turbulent China, which is down 24 percent.
Sonal Varma of Nomura, a banking company, wrote to clients that "the budget is a positive surprise, relative to our expectations. The commitment to adhere to the stated fiscal deficit targets suggests that the government has chosen to (prioritize) macro stability over growth."