andyn

India Faces a Long Bear Market - Barron's

India and the BRIC countries were indeed in a stock market bubble.
And that bubble has been deflated.

But looking ahead, recognize India is different from other emerging markets in that its a intensely domestic focused economy and still a largely protected one.
Which means that what the shrewd investor needs to see is what is going on internally in India and whether the growth of 5-7% can be sustained.

That seems to be likely since inflation is coming down which means the govt can finally cut interest rates and spur growth. This is doubly beneficial for the ruling Congress party as the elections loom since inflation under 5% bodes well for them in retaining their rule which is extremely bullish for stocks.

India should maintain their 5-7% growth and that is key when compared to the rest of the world (apart from China) which will barely grow. Relatively speaking, investing in India through IBN, HDB, SLT or just a index fund like EPI / PIN would be good.