Or as the Seattle Times headlined it:
Playing the Indian Stock Market
...Indian stocks' price-earnings ratios are higher than they have been historically, according to a report by Lehman Brothers, at 19 times estimates for the next year's earnings. Among emerging markets, only Argentina, Chile and China have sported such high valuations. The figure is close to the S&P 500's forward P-E of 20, but emerging markets typically have lower P-E ratios than developed markets.
India's economy is expected to keep booming. The International Monetary Fund predicts 8.4 percent growth in 2008, compared with 1.8 percent for the United States.
"Thus, although current static multiples look high, if growth is achieved then stocks are attractively priced even on a risk-adjusted basis," the Lehman report says. "We expect Indian equities to outperform developed and emerging market indices over a five-year horizon."...MORE
From Thompson via ABCmoney:
Lehman Brothers said India's economy could grow by 10 pct or more annually over the coming decade if the nation continues to actively pursue structural economic reforms.In its report on the Indian economy, the global investment bank also said India's equity market will outperform developed and emerging market indices over the next five years, forecasting returns of 12-20 pct in the period, and added the Indian rupee will appreciate 'significantly' against the US dollar.The report, however, cautioned that a sharp global economic downturn is a risk to Indias near-term economic growth, even if it is one of the least vulnerable economies, and that there could be a short-term overheating if there is a period of demand surpassing supply.
The Bombay Stock Exchange 30 stock index is the Sensitive (Sensex)
The broader National Stock Exchange's Index 50 stock index is the Nifty.
|S&P CNX NIFTY||5932.40||5866.45||1.12%|
|CNX NIFTY JUNIOR||10597.70||10467.25||1.25%|
|S&P CNX DEFTY||5228.15||5169.05||1.14%|
|S&P CNX 500||4810.50||4757.85||1.11%|
|NIFTY MIDCAP 50||3194.25||3139.15||1.76%|