Earnings disappointment a risk for Indian equity investors, says JPMorgan

The Indian measure is trading at 20.8 times its forward earnings estimates for the next 12 months, during which member profits are expected to grow about 44%, according to data compiled by Bloomberg

Equity investors in India face the risk of earnings disappointment after a rally that’s propelled the local stock benchmark to successive records this year, according to JPMorgan Chase & Co.
 

As business activity resumes following one of the world’s deadliest coronavirus outbreaks, consensus earnings estimates may end up being overdone, said Sanjay Mookim, head of India equity research at JPMorgan.

“Valuations in India are looking extended,” Mookim said in a video interview. “There is an expectation or belief that reopening equals growth. We see many reasons that, even if we open up, we may not be in a very strong