Valuations in Indian equity markets excessive: Emil Wolter

ET NOW talks to Emil Wolter, Head of Asian Regional Equity Strategy, RBS.

How would foreign investors take hike in interest rates in India and if at all - does that change their equity portfolio in India?

The interest rate hike is a reflection of the too little action too late. The RBI has been looking like it was caught handicapped for quite sometime and it is good that they are on the move but 25 basis points is not likely adjust the situation. Also notably the situation for the Indian equity markets is one where valuations are excessive and where the risks are not really reflected in the current prices. So we are recommending a cautious stance both in absolute terms but also relative to the region.