Indian stocks may still have room to run, if the historical price-earnings ratio against their emerging market (EM) peers is any guide.
While the S&P BSE Sensex Index is near the most expensive on record, its premium over the MSCI EM Index is only around 45 per cent, below its five-year average and down from 76 per cent in 2018.
Foreign investors have bought a net $6 billion of Indian shares this year — the only inflows to an emerging Asia market outside of China.
“The broader market is still fairly undervalued,” said Sumeet Rohra, a