Vasu Menon:Indian market one of worst-performing markets in Asia

The Indian market has been one of the worst-performing markets in Asia so far this year. The Bombay Sensex is down by close to 10%-11% and primarily because of the fact that inflation is picking up in India, the central bank has already increased rates by eight times in the past one year and yet inflation remains high and it looks like the central bank could actually increase interest rates further and given there is backdrop.

One has to take into account the possibility that the Indian stock market could actually hit lower for where it is right now, especially against the backdrop of uncertainties on the Middle East front, the Japanese earthquake and other factors at play. So I would not pass the possibility that the Indian stock market could weaken, but maybe not a lot more from where it is right now because already we have gone a lot.