Scarcely a day passes without some market analyst sounding the alarm that equities are now above “fair value”. It compares Bloomberg’s earnings estimates for FY17 for the Sensex from 1 April till date, with the value of the Sensex. How does Indian market valuation compare to its peers? Chart 4 looks at the one-year forward price-earnings multiple for the MSCI India index with that for MSCI Asia ex-Japan. But here too, the premium of MSCI India over MSCI World has been rising.

Source: Mint September 04, 2016 19:07 UTC