India second most expensive Asian mkt, retain neutral: HSBC

The Wall Street rallied with Nasdaq hitting a 14-year high as increasing homebuilder confidence and hopes for receding tensions in Russia gave investors reasons to make bigger bets on the equity market. Even the Asian markets have been looking better.

Discussing the Asian markets, in particular to India, Herald Van Der Linde, Head of Equity Strategy, Asia-Pacific at HSBC, said India is the second most expensive market in Asian pack. “We are neutral on India at current levels,” he said.

He said most funds are already invested fully into Indian markets, while “marginal money is currently going into China and Korea”.

Van Der Linde said the Indian equities have already rallied 22-24 percent and the upside looks capped for the year. He expects another 4-5 percent gain for Indian market from here.