India, Jan. 30 -- In the last week of December, there were reports of Foreign Portfolio Investor (FPI) inflows being down 99% from the previous year. Reasons ranged from high returns from the United States (US) market, a depreciating rupee, and a shift from public/secondary to private/primary markets, which could reverse as markets changed. Then came the news that the estimated Gross Domestic Product (GDP) growth for 2024-25 would be around 6.4%, below the Reserve Bank of India's estimates.

Among the explanations offered were muted private investment, weak consumption growth, and high interest rates. A narrative was forwarded that these are short-term challenges and that we should see an upturn within a few quarters. When such data comes...