For those of a nervous disposition, India’s markets look peculiarly dicey just now. From another angle, especially compared to the tumult across the Arabian Sea, the country resembles a bulwark of stability. Investors seem unsure whether to laugh or cry.

The past seven days have seen significant swings in sentiment. As turmoil in Libya sent oil prices surging last week, Mumbai’s benchmark Sensex index incurred its steepest one-day fall in 16 months. Then this Tuesday, as investors digested the previous day’s budget and its commitments to reducing the fiscal deficit, the Sensex recorded its biggest gains in a single session since May 2009. Continue reading »