Domestic buying powering Indian equities but stocks yet to feel tight money

Indian equities typically command a premium. Even now, when investors are nervously marking down their estimates of corporate earnings in emerging markets, they continue to believe that the South Asian nation’s firms will garner reasonably healthy profit growth. 
 

After recent downgrades, stocks comprising the country’s benchmark Nifty Index are forecast to deliver around 15% higher income over the next 12 months than at the start of 2020. This is when expectations for emerging markets as a whole have been scaled back to below pre-pandemic levels. Is this expected outperformance worth the extra price?

India’s valuation gap over other