India's market capitalisation-to-GDP at 116%, highest since 2007

Despite the wobble in the markets over the past few weeks, Indian equities remain expensive as measured by several yardsticks.

India’s market capitalisation-to-GDP ratio, for instance, has touched a multi-year high. The ratio is currently at 116 per cent, based on the FY22E gross domestic product (GDP) number, above its long-term average of 79 per cent. It is at the highest level since CY07, according to a note by brokerage Motilal Oswal Financial Services.

Indian equities are trading at 23.9 times FY22E earnings, with the Nifty50 at a 12-month forward return on equity (RoE) of 15.6 per cent, above its long-term average.

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