Looking at the scenario, I dont feel that this recovery from the recession may last. However if Stimulus packages dry upp we may se lower consumer demand globally. We can see another small dip in this slump which may continue in Mid 2010 all the way upto late 2011.India will still outperform.
As of now, its better not to bet on growth and discount equity on a higher end. For economies like India moderate growth between 5-7 percent can be expected. As said earlier 5.8% is what we could expect. Liquidity could be some concern in the next few quarters although not as grave as earlier.