India offers best risk-reward within emerging markets: Deutsche

After meeting 30 investors across key financial centres in EU and UK last week, Abhay Laijawala of Deutsche Bank says investors appear to be unanimously positive on India and believe that India offers the best risk-reward within emerging markets (EMs).

He further says the only major deterrent for most investors currently is rich valuations with Sensex trading at 18.3x on FY17, particularly for the favoured sectors such as consumer staples, autos, private sector banks and so on.

According to him, investors seem to be waiting for better valuations.Investors believe that macro factors such as FCNR (B) redemption or UP state elections which may provide lower entry points, Laijawala says.