That excellent columnist, Ila Patnaik, writes in the Indian Express:
The drama in the stock market has highlighted how India is still an immature market economy. It is the job of the stock market to fluctuate, to move in response to expectations. But in the media and in official circles in India, this induces disproportionate hysteria.
To become a mature market economy, the government has to stop trying to manage prices. When prices fall, as they did on 17 May 2004, we do not need the government to “prop up the market” or to look for manipulators. And when prices rise, we do not need a coordinated assault on the market. The government must respect the process of speculative price discovery, and accept the valuations that come out of it.
Amen. Read the full thing.