Decoded: FIIs' unshakable faith in Modi govt even as economy sputters

In September, the government slashed the corporation tax rate. He's also eased foreign investment rules in retail, manufacturing and coal mining, & merged 10 state-run banks to create four big lenders

India’s economy may be faltering, but its $2.1 trillion stock market has been powering to new highs as foreign investors pile into country’s shares, betting the worst may have already passed.

The economic growth is at the lowest since before Prime Minister Narendra Modi came to power in 2014. The economy expanded 4.5 per cent in July-September, slowing for a sixth straight quarter as deteriorating local consumption, troubled banks and a weak global outlook all took their toll. But the equity market? Now, that’s a different story. 

The S&P BSE Sensex Index surged 13 per cent from a low on