The Indian equity market is one of the top performing emerging markets so far this year. The benchmark S&P BSE Sensex crossed the 30,000 mark for the first time in many months. The index closed yesterday at 29575 for a gain of over 11% this year.
Though Indian stocks have the potential for further growth, on a valuation basis they are second most expensive in the world according to a report by Citi. The current forward P/E ratio of 17.3 is well above its mean. Incidentally the US is the most expensive market based on this ratio.
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Source:India is one of world’s most expensive stock markets, Live Mint, Apr 10, 2017