FT

• the Reserve Bank of India raised interest rates for the seventh time in less than a year in an effort to curb food price inflation
• Goldman Sachs, Credit Suisse, Morgan Stanley and Nomura are among a number of banks to have recently warned clients of the risk of slower growth.
• recent rise of between 17 per cent and 30 per cent in minimum wages across different Indian states has benefited rural incomes, but is also likely to add to inflationary pressure
• valuation perspective, the developed markets look more attractive than the developing market at least from the six to 12 months perspective - GS
• Even after the latest correction, the FPE ratio is between 19 and 22 times (LT Avg is 13.8). This is substantially above the ratio for the MSCI Emerging Market index, which is 12, and for the developed world, which is about 12.5 times. On a price-to-book ratio, Indian shares do not look that expensive in historic terms, but look pricey compared with emerging market peers, at 2.7 times versus 1.8 time