It bounced back today, or so I heard. We should not get our hopes up about this. Still, the nultinationals are a bit too sanguine about stable political orders in the "developing nations." I am waiting to see what happens if we have a bubble burst in China.
Well just to be clear, the collapse of the Indian economy is nothing that would "get my hopes up". I have a Masters in Economics...I know this "jobs outsourcing" mantra is nothing more than a democratic red herring and isn't really anything to get worked up over.
And although the market's did rebound somewhat today (last night) I'm certain that they will punish India for making a foolish choice. It's not just a question of stability and the associated risks, it's a question of properly assessing the cost of doing business.