Indian equities may fall 5-20% before more than tripling in 18 months says Gaurang Shah « ArabianMoney

Indian equities are facing a correction of five to 10 per cent ‘that could turn out to be 15-20 per cent’ but will then stage a spectacular rally back past previous highs with the index more than tripling in value in 12-18 months, the celebrated analyst Gaurang Shah of Geojit BNP Paribas told an event organized by Barjeel in Dubai last night.

Mr. Shah admitted that the headwinds facing the Indian economy are now enormous, not least of which a possible downgrading of Indian debt to ‘junk status’ that would lead to a massive exit of foreign investors, and he could not see this as yet fully discounted in current low share prices.

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