Here is what I expect in coming months?
There will be a deflation (falling prices) in areas of high debt and stocks i.e. stocks will fall; real-estate will fall in its effective price (i.e. price rises, if any, will be lesser than inflation rate).
The Indian government will continue reduce interest rates i.e. create more currency. This will cause inflation especially in essential goods and services.
So, to summarize, India (like many other countries) will have stagflation (slow growth with high inflation).
