The investors' dilemma

In the midst of India's economic resurgence, investors are grappling with the challenge of deploying capital in a valuation-sensible way

Investors are facing a genuine dilemma at the moment. Rarely has the big picture for India looked better. On almost any macro parameter, India stands out as an oasis of growth and stability in an otherwise lacklustre emerging market (EM) environment. Whether it is the top-down macro numbers, the current account deficit, fiscal policy, the rupee, or more granular corporate data, the reasons for enthusiasm and confidence are apparent.

The numbers are good and getting better. No other large EM country can grow real gross domestic product (GDP) at 6 per cent plus for an extended period irrespective of the