SINGAPORE (Sept 24): The Tantallon India Fund closed down -2.30% in August, after expenses. Rupee weakness is the primary culprit (the rupee, -10% year to date versus the US dollar, is now Asia’s worst-performing currency this year), caught up in contagion risk across emerging markets broadly, framed against the backdrop of USD strength and market concerns over higher energy prices being manifested in rising inflationary expectations, and central banks globally being forced to raise rates as the US Federal Reserve continues down its path of “normalisation”.

Somehow, lost in the general market malaise and the currency taking it on the chin is the fact that India’s real economy grew 8.2% in the April-June quarter, the best quarter posted in the last nine, well ahead of consensus expectations of around 7.6% growth.

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