Value is returning to Indian equities markets for long-term investors, according to an Indian investment specialist.
After booming in 2007, the Indian equities markets experienced a correction as part of the broader global credit-induced slowdown, India Equities Fund chief executive John Pereira said.
“While there has been some pain in the short-term, we believe the correction has created an opportunity for investors over the long-term,” he said.
Price to earnings ratios for Indian equities fell from highs of an average 30 times earnings during late 2007 to a more realistic level of 14 times earnings now, Pereira said.
Despite the correction, the Indian market was still up 49 per cent including dividends from the beginning of 2006.
India is now one of the world’s top ten destinations for private equity in terms of the value of deals, according to global deal tracking firm Zephyr.
Indian private equity deals have been valued at $6.39 billion for the year to May 31, 2008, representing an increase on the corresponding 2007 period.
“The reason India is such an attractive investment is that it is not relying too heavily on any one industry or any one trading partner,” Pereira said.
