India is the fifth-best performing market in 2017 (so far) globally. In the first five weeks of 2017, Indian equities have outperformed global equities by 10 percent, nearly reversing the underperformance in November-December 2016. This has mostly been driven by relative P/E jumping from a near 10-year low of negative 1 percent to positive 5 percent now.
Market remains constructive on narrower indices, given their significant global exposure and past positive correlation with commodity prices. It will look through distortions induced by strong flows in a market with disoriented expectations, and continue to prefer businesses with non-India exposure.
No comments:
Post a Comment