Overweight on India, see 7.9% GDP growth in FY17: Goldman

Timothy Moe, Goldman Sachs expects 5 percent dollar returns for the Morgan Stanley Asia Ex-Japan in 2016, driven by mid-single digit EPS growth, little overall valuation change, 5 percent forex depreciation and a 3.4 percent dividend yield.

Fed tightening and China slowing are pointing to a soft Q1, he feels.

He has started 2016 with overweight rating on India as he believes the strategic case for India is one of the most positive in the region.

Moe expects the Indian government to continue to push forward on its extensive program of economic reforms which will enable growth to accelerate to 7.9 percent next fiscal year and ultimately to its potential growth of over 8 percent in later years.