Merrill Lynch downgrades Indian market

Global investment banking outfit Merrill Lynch has downgraded India to 8220;market weight8221; category and said the near-term disappointment could accelerate selling that has until recently been rather modest. Congress8217; win in the Indian elections cast a major cloud over the near-term outlook for the equity market, it said adding 8220;we do not question Congress8217; reform credentials but rather those of its coalition partners.8221; Downgrading India from 8220;over weight8221; to 8220;market weight8221; category, Merrill Lynch Asia Pacific 8211; India strategy report 8212; which was prepared before the comeback of P Chidambaram as Finance Minister 8212; asked investors to cut exposure to the Indian stock market. 8220;Change in the government leaves the reforms process, fiscal and monetary situation, in question,8221; it said.