The volume of private equity (PE) deals in India is down by 47% in the first 10 weeks of 2008 over the year-ago period, but buyers say they are expecting cash-hungry companies with sharply lower valuations to line up in front of investors following severe declines in stock markets. They say that deal activity will pick up in the next two-six months. Until December, India’s capital markets had been a big competitor to PE. But, now, the capital market option has contracted sharply, stalling plans by many companies to raise funds. While it rose on Tuesday, the Sensex, the benchmark index of the Bombay Stock Exchange, has fallen about 27% since the beginning of 2008. In 2007, it had risen by 47%. […]