India's market cap-to-GDP now below long-term average of 76%: Report

Over the last 12 months, MSCI India has remained flat, while MSCI EM has slid 1.5%

India’s market cap-to-GDP — a ratio used to determine how over, or under-valued a market is — is now at 70 per cent, based on FY20 GDP estimates, and below its long-term average of 76 per cent, a report by Motilal Oswal Financial Services observed. 

This is the lowest in the last four years. The ratio was the highest, at 95 per cent, in FY10. 

Valuations of Indian equities are now below their long-period averages. The Nifty trades at a 12-month forward price to earnings multiple of 16.8 times, at a 7 per cent discount to its long-period average of