'Indian equity mkt to see profit-booking at current levels'

Signaling a downtrend ahead, global research firm Macquarie has said profit-booking is likely to emerge at current levels after the Indian equity markets emerged as the second best-performing market in Asia in the last three months.     

"After a very strong three months in which India has been the second best-performing market in the region, and with valuations no longer as appealing, we are happy to take profits," Macquarie said.     

The research firm further added that "the uncertainty about the outcome of the election, the potential for a sovereign downgrade, and the fact that the RBI is nearing the end of its easing cycle add to the underweight case."     

The equity markets in Asia, excluding Japan, has risen 28 per cent from its lows in March and is now trading up 39 per cent from the October lows of 2008.     

Worldwide stock markets witnessed a strong rally in April, with India's benchmark index Sensex surging 17 per cent -- the best in 10 years -- and the Dow Jones World Index jumping 12 per cent, the largest monthly gain since it began in 1991.There is undoubtedly a structural story in emerging markets, particularly in countries such as China and India