Not much upside for India Sensex

In dollar terms, the Indian equity markets are still down 40 per cent from their highs adjusted for the weakness of the currency. I think markets may rally somewhat further.

I think investors must realise about India that index stocks are not that cheap; they are quite expensive from a valuation point of view. You have many sectors in the economy that are depressed in valuation, I think the index will not do that much going forward, but some of the stocks will do well.

Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.