However, on a relative basis, India’s valuation is only marginally premium to the historical average. The Nifty is trading at a 12.9 per cent premium to the MSCI Emerging Market compared with the average of 38.2 per cent for the past five years. The Indian market has gained 27 per cent in dollar terms so far in 2017, while the MSCI EM is up 23 per cent. India’s market is now the world’s ninth biggest by market capitalisation and is quickly closing the gap with Germany and Canada. Domestic funds on average have seen inflows of $1 billion a month during the period.

Source: Economic Times July 27, 2017 02:40 UTC