In terms of 2-year earnings growth, India with a 16 pct growth rate is the best in the world, but its valuation premium is not as high...
In terms of 2-year earnings growth, India with a 16 pct growth rate is the best in the world, but its valuation premium is not as high, says Harsha Upadhyaya, chief investment officer of equities at Kotak Mahindra Asset Management.
* Adds India generally trades at 20-40 pct premium to rivals
* MSCI India is currently trading at 12.5 pct premium to MSCI World – Thomson Reuters Datastream
* MSCI Index – 1 year forward PE
Asia Ex Japan 13
Source: Thomson Reuters Datastream
* Says India will continue to get higher share of foreign flows due to a fall in crude oil prices
* Adds govt would continue with reforms as there is no political roadblock for the next 8-9 months given state elections are due in Nov-Dec
* The fund manager likes banks, auto and cement stocks
* Remains underweight on telecommunication stocks as competitive intensity remains high