India’s market cap is still lower by 15 per cent compared with the pre-lockdown level of $2.12-2.20 trillion.
ET Intelligence Group: Indian equities have emerged as the most expensive among major global peers thanks to a sharp rally over the past few weeks amid earnings downgrades. The benchmark Nifty 50 now trades at a trailing price-earnings (P/E) multiple of 22.6 per cent, which is the highest among top global markets barring South Korea. In addition, the one-year forward P/E is 19, which is at a 25 per cent premium to the 15-year average and higher than 18.2 in February.
The Nifty has gained 35.2 per cent in the past three months, the most among the top global indices, according to the data from Bloomberg. India’s total market capitalisation rose by $530 billion to $1.8 trillion in the past three months. The indices in other major markets including the US, Japan, Germany and France rose by 28 per cent, 25 per cent, 29 per cent and 18 per cent, respectively, during the period.
With the sharp rebound, the MSCI India index has outperformed the MSCI EM index — a gauge for the equities of developing nations in dollar terms — by 5 per cent in the past three months. India’s market cap is still lower by 15 per cent compared with the pre-lockdown level of $2.12-2.20 trillion.
Foreign portfolio investors have pumped in Rs 44,402 crore in Indian stocks in the past three months after offloading a record Rs 61,972 crore worth of equities in March. In June alone, they purchased equities worth Rs 22,194 crore, according to the NSDL data.
