Warren Buffett's favourite chart says 'have no fear' to India stock bull

Sensex's 17% gain in 2017 means India is now one of the most expensive Asian markets

India’s booming stock market is now worth almost as much as the nation’s economy. But, that’s not unsettling Raamdeo Agrawal, the broker turned stock picker who built a multi-billion dollar financial firm using the tenets of Warren Buffett.

While the benchmark index has set multiple records this year, Agrawal says it’s still relatively cheap by the sage of Omaha’s favourite valuation indicator — market capitalisation to gross domestic product. By that measure, the S&P BSE Sensex’s valuation is still more than 40 per cent short of its high reached shortly before the global financial crisis.

“The ratio is way below