India most expensive among EMs: Feriani

Excerpts from Closing Bell on CNBC-TV18 Watch the full show » RELATED NEWS Asian market fundamentals look good: Eurekahedge Global equities are back in vogue Indian market is very expensive: Feriani ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Q: What about India specifically?

A: India unfortunately is probably the most expensive market. India corrected along with other emerging markets back in May-June. But then, it wasn't basically enough to bring value back.

We are now looking at India trading over 20 times P/E ratios for 2006 and about 17 times P/E ratios for 2007 and that is very expensive compared to the aggregate average for emerging markets of 12 times P/E'06 and 10 times P/E '07.

India is really all about growth, both from GDP point of view and also from an earnings growth point of view. But growth is in line with the average emerging markets.

So it is very difficult for us to justify buying too much of India, when markets like Brazil and Russia are trading at 10 times multiple this year and single digit P/Es for next year and roughly the same kind of growth of low-twenties or mid-twenties earnings growth for this year and next year.