Global investors bullish on Indian equities market despite 86% premium: USB

Swiss brokerage UBS Securities said global investors are bullish on Indian equities market in spite of the 86 per cent premium it commands over emerging market peers and on the back of a 17 per cent outperformance so far this year. "India is one of only three markets to trade at a premium to its own history, (the other two being Thailand and the UAE)" despite it commanding an 86 per cent premium over its emerging markets peers, according to UBS Securities. In spite of the expensive valuations, most equity investors are quite optimistic, both from a cyclical and a structural perspective even though they see the economy losing the steam and printing in a 6.9 per cent growth this fiscal and a much lower 5.5 per cent next fiscal before settling at the long-run average of 6 per cent in FY25, UBS Securities said in a note on Tuesday. On Monday, its Wall Street rival Morgan Stanley said the Sensex would continue to outperform in 2023 with an average 10 per cent rally taking the benchmark .

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