Maharashtra vote, RBI, a big call on Indian equities

For the past three years India has been the darling of global investors, but its stock market has come under pressure in recent weeks amid signs of a bubble forming and we've made a big call that Indian stocks will underperform other EM equities over the next 18 months. Next week, the RBI is poised to keep interest rates on hold, and we expect the accompanying communications to sound fairly hawkish given the recent jump in inflation.