India started the year with one of the most expensive stock markets in the world; in January, the Indian market was trading at almost twice the multiple of the world average and was also the most richly-valued emerging market.

<tr><td><p class='TableClas'></p><P class='TableClas'><DIV CLASS=rightDiv><script language="JavaScript">
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		</script> </DIV><p class='TableClas'>On a trailing 12-month basis, the BSE 200 trades at 14.7 times earnings, compared with 22.2 times six months ago. If one were to exclude the state-owned firms from this universe, however, the multiple goes up to 18. So, while valuations today are in more reasonable territory than they were six months back, corporate earnings could slow over the next few quarters 

P>India started the year with one of the most expensive stock markets in the world; in January, the Indian market was trading at almost twice the multiple of the world average and was also the most richly-valued emerging market.

<b>Editorial:</b> Has it fallen enough?

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