While Indian stocks have rallied strongly this year and he rupee has been on an uptick, local bonds have been under pressure amid concerns over rising inflation and increased public spending. In the dollar bond market, November's failure by mobile operator Reliance Communications to pay the coupon on its 2020 bonds raised the alarm among overseas investors.
What's more, a mountain of bad debt has dragged on the government's ability to kick-start a stalling economy. In late October, the government of Prime Minister Narendra Modi injected $32 billion into the country's ailing state-owned banks in an attempt to clear up lingering concerns about the health of the banking...
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