INSUBCONTINENT EXCLUSIVE:
The valuation premium enjoyed by Indian equities over MSCI Emerging Markets has surged to its highest level since 2008
The premium of estimated price-to-earnings multiple of the NSE Nifty50 Index over the MSCI Emerging Market Index now stands at nearly 75 per
A similar level was last seen way back in January 2008
Price has led to the premium as India is the only country among the top four constituents of the emerging market index to gain over 4 per
China, highest by weight, is down over 20 per cent, while South Korea is down 16 per cent and Taiwan is down nearly 9 per cent for the year
Overall, the MSCI Emerging Market Index has declined over 16 per cent during the same time
However, India does not look overvalued when looked at in dollar terms said Alok Jain of WeekendInvesting
The month of December too has seen India outperform other global equity indices on the back of a near 8 per cent fall in crude oil and
In fact, India has seen the highest FII inflow of $373 million among other Asian nations
India has also seen the highest passive investment of over $2 billion among emerging markets in the last one month
Analysts have forecasted earnings per share growth of 4 per cent for the MSCI Emerging Market Index
