Macro to micro transition: 2018 is going to be a difficult year for markets

The economy is recovering from the GST and demonetisation disruptions

Over the last four years India has been a great macro story. In a tough environment for most emerging market (EM) economies, with falling oil and commodity prices, we have stood out. Consider the macro variables at the time the Modi government came into power, every indicator has since moved in the right direction. Inflation has dropped to sub five per cent on a sustained basis. Interest rates have dropped across all types of instruments be it government bonds or corporate debt. Liquidity has improved and the corporate bond market has come to life. The current account is not even