Stocks can't keep defying slowdown as govt steps fail to convince investors

Analysts say the government's booster dose might not be enough to spur demand in the near term, meaning India's economic woes will continue to weigh on shares and the rupee

Investors are finding government steps to lift India’s sagging growth to be too little, too late.

A three-day rally in stocks faded Wednesday after a gauge showed weakness in the country’s economic activity worsened last month. The lingering pain raised doubts about the effectiveness of the steps announced Friday to spur growth.

Not surprisingly, data due Friday may show that gross domestic product slowed in the quarter ended June, to 5.7% from a year earlier, forcing Finance Minister Nirmala Sitharaman to add to last week’s measures to re-ignite demand.