India Shadow Banking Crisis May Return to Haunt Stock Market
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India’s shadow banking crisis has sucked in more financial firms this week, eroding a stock market rally that’s been driven by a surprise $20 billion tax cut package.
The S&P BSE Sensex Index fell 0.5% on Thursday, set for its fourth day of losses, ending a surge since the Sept. 20 announcement of the tax cuts. Financial stocks, which account for 45% of the benchmark index, contributed the most to the declines since late last week, according to data compiled by Bloomberg.