Record valuation of local equities confirms FPIs’ confidence in India’s growth prospects

Sebi Chairperson, Madhabi Puri Buch, applauds FPI's trust in India's growth as local equities peak. Market efficiency enhanced with shorter settlement cycles, reflecting global confidence in Indian markets.

Mumbai: The for local equities is an emphatic vote of confidence by (FPI) in the country’s growth prospects, , Chairperson of the Securities and Exchange Board of India (Sebi), said on Tuesday.

“Why is it that our markets are commanding this price to earnings multiple which is higher than not only the average of the world indices but also when compared with various nations?” Buch at a CII event on corporate governance.

“At 22.2x, yes, some people say that we are an expensive market but, still, why is the investment coming? Because this is a reflection of the optimism and the trust and faith the world has in India today that we are commanding this kind of multiples in our markets,” she added.

In the past one year, the Indian have gained over 25% ( Nifty 29.07% Sensex 25.04%) as compared to the 16.88% and 11.15% upmove in the NYSE Composite and pan-Euro Stoxx 600 indices, respectively.

Elsewhere in Asia, China declined 6.72% while Japan’s Nikkei 225 index advanced 41.33% in the last one year.

Last month, Buch had raised concerns over stretched valuations of small and mid- cap stocks, saying there are pockets of froth in the market.

The regulatory body head also pointed out that with the introduction of shorter trade settlement cycles the functioning of the have improved significantly.

"We measure defect rate of settlement with the DVP ratio or the delivery versus payment ratio," she said.

"Prior to T+1 (settlement cycle) DVP ratio was 0.7-0-8 percent. After T+1, the ratio has halved to 0.3-0.4 percent. So the entire process (of a securities market transaction) has become far more optimal and efficient after T+1," she added.

In 2021, India introduced T+1 trade settlement cycle for equities in a phased manner. A few days ago, same day trade settlement was introduced on an optional basis in the equity cash market for a limited set of 25 stocks.

Source: Stocks-Markets-Economic Times

Publicații recente
Grid Dynamics Holdings, Inc. Announces Pricing of Public Offering
13.11.2024 - 05:00
Trump names Elon Musk to role for creating greater government efficiency
13.11.2024 - 05:00
Nvidia and SoftBank pilot world's first AI and 5G telecom network
13.11.2024 - 05:00
Asia fund managers remain bullish on Japan, turn balanced on China- BofA survey
13.11.2024 - 05:00
Seven & i considering launching management buyout, Nikkei and Bloomberg say
13.11.2024 - 05:00
China says TSMC chip curbs undermine interests of Taiwan companies
13.11.2024 - 04:00
Asia stocks dip as Trump rally cools, CPI data looms
13.11.2024 - 04:00
Trump rewards Elon Musk with leading role in government efficiency department
13.11.2024 - 04:00
DirecTV to drop Dish acquisition plan if EchoStar debt-exchange offer fails
13.11.2024 - 04:00
Spirit Airlines continues 'constructive talks' with creditors
13.11.2024 - 03:00
Trump names Musk, Ramaswamy to lead newly formed Department of Government Efficiency
13.11.2024 - 03:00
US stock futures fall as Trump trade fizzles ahead of CPI data
13.11.2024 - 02:00
Kraft Heinz pulls Lunchables meals from US national school lunch program
13.11.2024 - 02:00
Global EV sales up 35% in October, Europe ekes out a gain
13.11.2024 - 02:00
Trump says Elon Musk, Vivek Ramaswamy will lead the Department of Government Efficiency
13.11.2024 - 02:00

© Analytic DC. All Rights Reserved.

new
Analiza pieței Cum va afecta raportul NFP de mâine cursul de schimb al dolarului american?