Managers divided on outlook for Indian equity markets

Inflation risks and overvalued stocks are main factors behind bearishness on India despite some managers spotting the region's potential

Managers are divided on the outlook for Indian markets, with the bears pointing to inflation risks and overvalued stocks. According to Hendersons' Mike Kerley, India is the worst-performing market in the region year to date, with the exceptions of the Philippines and Vietnam. The manager of the group's Far East Income trust believes the country is a prime example of overly optimistic forecasts. "India worries me and we have not been exposed to the country for a while," he said. "It does not have the ability to offset rising fuel and agricultural prices and its fiscal deficit is boun...