India at lifetime high while other emerging markets are 30% away from their peaks
I
ndian equities are trading at their lifetime highs while the emerging markets are 30 per cent away from their peaks.
This is largely a result of strong FPI equity flows , pick-up in MF equity flow, benign crude oil prices, sharp progress in south-west monsoon, continued demand traction , and likely mid-teen corporate earnings growth , Antique Stock Broking said in a note.
Indian equities are trading at 20x 1-year forward P/E multiple helped by strong FPI equity flows , pick-up in mutual fund equity flow , benign crude oil prices, sharp pick-up in monsoon, resilient domestic macro , and likely mid-teen corporate earnings growth , the report said.
India is at a lifetime high, unlike other emerging markets with almost all sectors indices reaching their lifetime high, the report said.
India continues to trade at above mean valuations and at premium levels relative to global equities. Mid-caps are now trading at average premium levels helped by pick-up in FPI equity inflow into India especially in financial services, industrials, and auto sectors.
Healthy demand accompanied by margin uptick to drive 1QFY24 earnings, the report said. Various high-frequency indicators along with various RBI surveys point to healthy demand traction in 1Q , which along with lower commodity prices , is likely to result in mid-teen corporate earnings.
Most of the sectors are likely to report in-line earnings, with a positive surprise likely in store for oil & gas and cement . However, earnings downgrade is likely in consumer durable and agrochemical .
Early signs of rural recovery are underway, the report said. Our on-ground interactions suggest that rural markets are witnessing recovery with select FMCG companies witnessing rural growth ahead of the urban markets. Our economic indicators also suggest signs of a pick-up in rural consumption, the report said.
✔️ India at lifetime high while other emerging markets are 30% away from their peaks
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