Growth Soft Patch To Endure

BMI View: With domestic and external factors continuing to deteriorate, India's growth downturn will be deeper and more drawn out that previously anticipated. We have revised down our FY2011/12 and FY2012/13 real GDP growth forecasts to 7.4% (from 7.6%) and 7.5% (from 8.2%), accordingly. Despite hitting our long-held 17,000 downside target, the Sensex remains expensive against these mounting headwinds, convincing us that we remain some distance off an attractive long-term buying opportunity for Indian stocks.

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