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India's market capitalisation-to-GDP at 116%, highest since 2007

Despite the wobble in the markets over the past few weeks, Indian equities remain expensive as measured by several yardsticks

markets, indian markets, bse, nse, share markets, stock markets
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Illustration: Binay Sinha

Ashley Coutinho
Despite the wobble in the markets over the past few weeks, Indian equities remain expensive as measured by several yardsticks.

India’s market capitalisation-to-GDP ratio, for instance, has touched a multi-year high. The ratio is currently at 116 per cent, based on the FY22E gross domestic product (GDP) number, above its long-term average of 79 per cent. It is at the highest level since CY07, according to a note by brokerage Motilal Oswal Financial Services.

Indian equities are trading at 23.9 times FY22E earnings, with the Nifty50 at a 12-month forward return on equity (RoE) of 15.6 per cent, above its long-term average.

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First Published: Feb 07 2022 | 1:24 AM IST

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