India risks wealth erosion as savers chase stock rally

Mumbai

INDIANS pouring record amounts of their savings into a stock-market rally risk getting burned.

Earnings per share at companies in the NSE Nifty 50 Index have stagnated since the run up to the 2014 elections, which triggered a surge in equity prices. The index has risen 50 per cent over the same period. Bridging the gap won't be easy after already-slowing economic growth was slugged by Prime Minister Narendra Modi's demonetisation drive late last year and the disruptive roll out of a goods and services tax this July.