Why Bombay's Blue Chips Are Down

Local investors suspect multinationals give them a raw deal

Anyone who follows the Bombay Stock Exchange will have noticed the pattern. Blue-chip multinational stocks are getting hammered. From January through September, the exchange's index of nontechnology securities, which is dominated by locally traded subsidiaries of big multinationals, has dived 18%. Sure, tech stocks are getting hit, too, but the blue-chip companies boast the famous brands, aggressive marketing, and solid growth prospects that are supposed to keep them buoyant.

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