Stock market crash an opportunity? The BJP's underwhelming performance in the recent Lok Sabha elections has wiped out nearly all the gains made by the Nifty this year in a single day. On Tuesday, the Nifty plummeted by 1,379 points or 5.93%, yet it continues to trade at a premium valuation compared to other global markets.
India's one-year forward earnings multiple of 21.27 is the second highest, trailing only Japan, according to an ET report.
India and Japan have both experienced significant market rallies, fueled by India's rapid economic growth and Japan's corporate reforms.
Global markets comparison
In comparison, the Chinese market is currently trading at 11 times its one-year forward earnings, while markets in Singapore, Korea, Hong Kong, and Brazil are trading even lower than China.
Foreign investors have withdrawn Rs 50,000 crore from Indian equities so far this year, with a significant portion of these funds being redirected to more affordable markets like China.
Aditya Khemka, a fund manager at InCred Asset Management, believes that Tuesday's market correction marks the beginning of a stock picker's market and potentially a prolonged pause for passive investors.
"We expect the market to be sideways in the near future and businesses with strong earnings momentum and reasonable valuations to outperform the market," he said.
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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