Global funds remain more overweight on India than APAC: Amish Shah

Amish Shah, India equity strategist at BofA Securities says that his firm expects the markets to consolidate in the near term

It has been an eventful week for the markets that negotiated the weak economic data and developments in the telecom and banking sectors. Amish Shah, India equity strategist at BofA Securities, tells Puneet Wadhwa that his firm expects the markets to consolidate in the near term as stocks of large sectors now offer limited room for further valuation re-rating after the recent rally. Edited excerpts:

Are the markets factoring in a possible further deterioration in the economy?
 

Despite the impact on macro/fiscal deficit, given the massive liquidity globally, the markets are unlikely to correct meaningfully, especially given that valuations for