“The perception of risks in China has gone up and may lead investors to take out money and deploy it into other emerging markets," Sunil Tirumalai, head of India strategy, said in an interview. “However, given the expensive valuations for India, this money may flow into other markets." With earnings sputtering and global funds turning net sellers of Indian shares, that trend is starting to look vulnerable. Meanwhile, the surge in share prices has the Nifty trading at 21.3 times estimated 12-month earnings, much higher than its five-year average of 18 times. The MSCI Emerging Markets Index is trading at a multiple of 13 times.

Source: Mint August 09, 2021 00:56 UTC