The Indian equities are favourably valued on parameters such as market capitalisation-to-GDP and price-to-book value, say the country’s top fund managers. This is in contrast to the popular perception that Indian markets are expensive as it trades at a price-to-earnings valuation way above its long-term averages.
“There is this notion that the markets are expensive. I feel differently. India’s market cap-to-GDP ratio is very attractive. It is true that earnings have been weak in India but that will change maybe from this year itself,” said Prashant Jain, executive director and chief investment officer (CIO), HDFC MF.
