Valuations limit upsides in near term: Mkt gurus
Business Standard|November 08, 2024
The equity valuation premium for the Indian stock markets has "limited room to expand" in the short to medium term despite the country's economy on a structurally sound path, said market analysts at the Business Standard BFSI Insight Summit on Thursday.
PUNEET WADHWA & NIKITA VASHISHT
Valuations limit upsides in near term: Mkt gurus

Speaking at a panel discussion in Mumbai, they concurred that a person's investment horizon was key to earning returns from the market.

The price-to-earnings (P/E) multiple of Indian markets is 20-30 per cent higher than their long-term averages, resulting in expansion of the premium of Indian markets over other emerging markets, said Prashant Jain, chief investment officer at 3P Investment Managers.

"To a large extent, this is justifiable as India's prospects appear better as compared to the last 10 years. A lot of improvement has taken place in India in terms of reforms amid lower inflation. However, there is limited room for P/E multiples to move up and return expectations going ahead have to be moderate," Jain cautioned.

No other equity market offers the rate of growth as seen in India, Vikas Khemani, founder, Carnelian Asset Management, said, asserting that this will see investors chase Indian equities, and eventually lead to the likely expansion of valuation multiples over time.

P/E ratio in isolation cannot be the sole indicator of an expensive market, said Sunil Singhania, founder, Abakkus Asset Manager.

Noting that as value conscious investors, it is an important factor to consider, he emphasized that investors should be able to digest market volatility to make money over a long period of time.

This story is from the November 08, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the November 08, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
Business Standard

At 122, harmful AQI days in 2024 six more than last year

Number of days with air AQI between 0 and 200 in Delhi has stood at 201 this year so far

time-read
2 mins  |
November 21, 2024
Cricket's heavyweights pad up for pitch-perfect battle Down Under
Business Standard

Cricket's heavyweights pad up for pitch-perfect battle Down Under

\"Hello, and welcome to all our international viewers to the WACA Ground in Perth..,' For many, the understated, mellow Voice of Richie Benaud served as a window into a distant land where cricket was loud, aggressive, and played in colossal amphitheatre-like stadia.

time-read
3 mins  |
November 21, 2024
Govt prepares logistics plan for metros to tackle traffic, pollution
Business Standard

Govt prepares logistics plan for metros to tackle traffic, pollution

The Centre has prepared a 'City Logistics Plan' for metros such as Delhi and Bengaluru for efficient freight and logistics movement within the city, a senior official of the Department for Promotion of Industry and Internal Trade (DPIIT) said on Wednesday.

time-read
1 min  |
November 21, 2024
NOT SO HOT ON HYBRID
Business Standard

NOT SO HOT ON HYBRID

A new report says EVs ancl CNG vehicles will outpace hybrids byfar

time-read
2 mins  |
November 21, 2024
Voltas Well placed to improve market share
Business Standard

Voltas Well placed to improve market share

Analysts positive on volume-led growth that will reflect in stock price

time-read
3 mins  |
November 21, 2024
Domestic business, lower guidance to weigh on PI Industries
Business Standard

Domestic business, lower guidance to weigh on PI Industries

PI Industries reported a revenue growth of 5 per cent year-on-year (Y-o-Y) in Q2FY25, led by a surge in the custom synthesis and manufacturing (CSM) segment and the export business, which posted 10 per cent growth.

time-read
2 mins  |
November 21, 2024
Business Standard

CIEL HR files draft papers, eyes ₹335 crore via fresh issue

Chennai-based CIEL HR Services, which provides technology-driven human resources solutions, on Wednesday filed a draft red herring prospectus with markets regulator Sebi to raise funds through initial public offering (IPO).

time-read
1 min  |
November 21, 2024
Maharashtra poll results unlikely to move markets
Business Standard

Maharashtra poll results unlikely to move markets

The outcome of the Maharashtra Assembly elections is unlikely to shake domestic markets that have other bigger developments to worry about, according to analysts.

time-read
1 min  |
November 21, 2024
Business Standard

Period of easy returns now over, taper expectations: Motilal Oswal

The period of easy returns where rising tide lifts all boats is likely over, Motilal Oswal Private Wealth said in a recent note, citing the likelihood of a moderation in corporate earnings growth in the coming years.

time-read
1 min  |
November 21, 2024
SMEs voice concern over tighter IPO norms
Business Standard

SMEs voice concern over tighter IPO norms

Sebi has proposed an overhaul of SME IPO rules to curb fund diversion and malpractices

time-read
2 mins  |
November 21, 2024