India Commanding Higher Valuations On Investors' Optimism And Trust: Buch

India Commanding Higher Valuations On Investors' Optimism And Trust: Buch

Buch said she meets foreign investors regularly as part of her mandate and has seen an increased interest in India among them because of the velocity which the country's economy has got after years of high speed growth.

PTIUpdated: Tuesday, April 02, 2024, 04:48 PM IST
article-image
India Commanding Higher Valuations On Investors' Optimism And Trust: Buch | Representative Image/File

Sebi chairperson Madhabi Puri Buch on Tuesday said the Indian capital markets are commanding higher valuations because of foreign investors' optimism and trust in the country.

She said at 22.2, the ratio of price to earning multiple in the Indian market is higher than the average of many indices around the world.

"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 that the world has in India today that we are commanding the kind of multiples in our markets," she said at a CII event on corporate governance here.

A few weeks ago, Buch had flagged concerns on high valuations in segments of small and midcap stocks, stating that it could be becoming into a bubble.

Buch said she meets foreign investors regularly as part of her mandate and has seen an increased interest in India among them because of the velocity which the country's economy has got after years of high speed growth.

They are encouraged by data suggesting the strength of the economy as visible in the growth in GST collections month on month, advance tax payouts, power and energy consumption, she said.

The interest has led to the overall market capitalisation in equities reaching over Rs 378 lakh crore at the end of FY24 from Rs 74 lakh crore a decade ago, Buch said, adding that the market capitalisation is at the level of the overall GDP now.

She said Indian entities raised a total of Rs 10.5 lakh crore from markets by way of equity and bond issuances in FY24, which includes over Rs 8 lakh crore through the bond route.

Speaking about the bond issuances, she said it has reached over 62 per cent of the overall bank lending done in a year now. 

RECENT STORIES

On Market's Mind: US Fed, Israel-Iran Conflict And Q4 Earnings Will Decide Performance Next Week

On Market's Mind: US Fed, Israel-Iran Conflict And Q4 Earnings Will Decide Performance Next Week

'30 Crore Consumers In 4 Months': Free Safety Check For All LPG Connections By Govt Oil Companies

'30 Crore Consumers In 4 Months': Free Safety Check For All LPG Connections By Govt Oil Companies

₹20,000 In 4 Days: FIIs Shed In Volumes Amid Election And Global Uncertainties

₹20,000 In 4 Days: FIIs Shed In Volumes Amid Election And Global Uncertainties

Direct Tax Collections Exceed Estimates In FY24; Jump 18% To ₹19.58 Lakh Crore

Direct Tax Collections Exceed Estimates In FY24; Jump 18% To ₹19.58 Lakh Crore

Smooth, Sleek And Sedan: 2024 Audi A3

Smooth, Sleek And Sedan: 2024 Audi A3