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Tag Archive: India’s economy


Are Markets Overvalued?

Very common statement from the market analysts these days for the Indian stock market.  India Overvalued but the blogrally will continue.  Although based on valuation metrics, Indian equities are now trading at a significant premium to stocks in other EM countries some analyst claim this too.

We have consistently outperformed the market! … Sensex is now overvalued.

“The stock market is overvalued.” “The stock market is undervalued.”

Which one of these statements is true? Well I don’t know.  May be both

Thanks to quirks of the most popular way of measuring a stock’s valuation: the price/earnings ratio.

While no one disagrees about what the “P” is when calculating the ratio, there is no consensus on how to Continue reading

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Yesterday FT did an interesting post on the 3 scenarios for the next government . The Good , The Bad and The Ugly directly impacting the economic scenario of India . The Fun fact: as many as 363 political parties participated in the 2009 general elections and only seven of them were national. India really does coalitions with gusto and there is a chance that anti-incumbwncy voting — embodied best perhaps by the anti-corruption poll-complicating AAP — might deny the BJP the seats they need to form the stable government apparently being priced in

The most interesting is to analyse the below scenario :

blog

Caveat emptor : The above is subject to change if Congress is able to form the govt 😉

Economic commentators are disappointingly short on metaphors. New economic figures released last week prompted a slew of blogarticles asking whether or not India’s economy had “turned a corner,” “cleared the woods” or begun sprouting “green shoots.” After a turbulent summer – and against the backdrop of a lingering global downturn, looming general election and a booming China – it’s no surprise that Indians, and investors, are desperate for signs that the country’s economy is “back on track.”

As the global markets flopped at the end of last week under the repeated threat of the Federal Reserve removing its support for the US economy, one market decided to go the other way – IndiaContinue reading

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