Sakthi Siva, Credit Suisse says while expensive markets can stay overvalued, she highlights the 6-11 percent underperformance of MSCI India, MSCI Philippines & MSCI Japan from their highs about two months ago.
She believes there is more room for underperformance, as investors have been 'hiding' in India and the Philippines. For India, she believes catalysts are continued EPS misses, potential stabilisation in China macro and/or more China stimulus.
In India, with return on equity gap between cyclicals and defensives stabilising, Siva highlights staples and healthcare as the two most overvalued sectors coupled with EPS cuts.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
