The big bear turns positive on India

Nouriel Roubini shot to fame thanks to the global financial meltdown of 2008. He didn't make too much money out of being right (unlike John Paulson or George Soros), but certainly earned name and fame!

Since his heyday at the height (depth?) of the armageddon in October 2008, he has been as vocal as before, but not quite so prescient, as markets everywhere have ignored his calls of doom, and have rallied massively. It is interesting to see what the big bear says about Indian markets now...

And surprise surprise! The guy predicts new highs for us next year. The reasons he gives are: 1) The USD carry trade and 2) the fact that India is the top pick in the emerging economy universe and is relatively scarce (i.e. foreign investment can come into India only in the equity market, not through debt, real estate or other investment classes). Both points are well taken.

But I start getting sceptical when the sceptics start becoming believers!! Will Mr. Roubini be right this time? That is the trillion INR question :-)