A correction relative to Asian peers could be on the cards: Raychaudhuri

Interview with Manishi Raychaudhuri, Asia Pacific equity strategist at BNP Paribas

Emerging market flows face a risk of sharp appreciation of the dollar, or severe global political uncertainty ignited by European election outcomes or potential trade restrictions, says Hong Kong-based Manishi Raychaudhuri, Asia Pacific equity strategist at BNP Paribas, in an interview with Puneet Wadhwa. Edited excerpts:

How are the market valuations looking at this stage?

On consensus earnings estimates, the frontline indices like the S&P BSE Sensex or MSCI India are trading at PE multiples of 19x 12-month forward earnings per share (EPS). That’s about a 50 per cent premium to the weighted average PE of India’s peers in Asia.