Modi’s Belt-Tightening Push Raises Pessimism Around India Stocks

Prime Minister Narendra Modi’s push to curb fuel and gold consumption has added to uncertainty in India’s already weak stock markets, raising concerns that moves meant to protect the economy may end up cooling overall spending.

The government on Wednesday more than doubled import taxes on gold and silver, following Modi’s weekend call to cut non-essential imports and preserve foreign-exchange reserves. The NSE Nifty 50 Index has slid about 3% this week to underperform regional equities, as investors grow wary of further measures, such as higher fuel prices, alongside the impact of the Middle East conflict.