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One-time emerging market darlings now in the firing line

Indian Prime Minister Narendra Modi (Getty Images)

The carnage in global financial markets since the start of this year has accentuated one of the important trends in emerging markets: the increasing vulnerability of once-resilient developing economies.

     The most conspicuous example is India, once perceived by investors as one of the most promising emerging markets. Its financial assets had until quite recently withstood the deterioration in sentiment towards developing economies remarkably well.

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