Allianz BRIC Stars manager warns of looming correction for India

Allianz Global Investors' Kunal Ghosh has warned of an imminent correction in the Indian equity market after a post-election bull run.

The manager of the £271m Allianz BRIC Stars fund has some 27% of his portfolio in Indian stocks, helping him benefit from the sharp rise in the Sensex following the election of Narendra Modi as prime minister last May. Over the past 12 months, India's main equity index is up 23%, building on the stronger gains made in the run-up to the election. However, Ghosh (pictured) suggested the market is now likely to hit a soft patch: "In the next six months, I would be careful of India as, after so much success, you are going to find a consolidation." He added the changing structure of the...