Andy Mukherjee, Columnist

India’s Equity Mania Meets Its Match in Psychology

Diminishing returns.

Photo: Indranil Aditya/NurPhoto/Getty Images

Throughout this decade, India’s household savings have steadily left the safety of bank deposits to chase returns in equities. This migration was supposed to provide a stable pool of risk capital to entrepreneurs and act as a shock absorber against fickle hot-money inflows from overseas.

The war in Iran has punched holes in this cheery thesis that a ceasefire may not mend.