External Destabilisation Early Warnings

EPW Research Foundation The money, foreign exchange and capital markets have witnessed skirmishes, reflecting the south-east Asian turmoil While the general impression that Indian markets are by and large insulated from external turmoil is valid, there is no gainsaying that both the stock markets and the exchange rate are under pressure. This is largely because of poor domestic fundamentals, but partly also because of the destabilising effects of the liberalisation process.