Plunge in Indian Stocks Highlights
How Market Still Is Coupled to U.S.
NEW DELHI -- India's once-soaring stock market has plunged this year and
could slide further in the short term, analysts say.
Slower economic growth, uncertain cor****ate profits, tight liquidity and a
lack of economic overhauls ahead of a general election will weigh on
Indian
stocks, analysts predict. That will leave investors with the choice of
trying to pick winners from the rubble or putting their money elsewhere.
The market's tumble shows that India is far from immune from adverse
events
outside its borders -- a big disappointment for investors who bet on India
"decoupling" from the U.S. economy soon.
"The journey has started, but is not materially down the road to say that
India has decoupled," says Deepak Lalwani, director at London stockbroker
Astaire & Partners Ltd. "I believe it will take another five to seven
years
before India can be said to be less affected by a major U.S. slowdown."
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