As global cash shrinks, party may be over for Indian equities

Even as BofAML expects India's NSE Nifty 50 Index to end 2019 at 11,300 - a 4% gain for the year - it won't be a smooth ride

The party’s over for Indian equities, with stocks headed for another tough year as a shrinking global cash pool dims prospects of an improving economy and expected recovery in company earnings boosting stocks, according to Bank of America Merrill Lynch.

“Imagine you are at a New Year party and happy to find out that there’s more room to dance but suddenly you realize that’s because everyone is leaving and the music has stopped,” Sanjay Mookim, BofAML’s India equity strategist, said at his office in Mumbai. “Indian equities are somewhat like that at the moment,” he said.

Still, purchasing by local