India's long-term appeal remains strong: Goldman Sachs' Timothy Moe
Timothy Moe, Chief APAC Strategist at Goldman Sachs highlighted that despite the market's upward trajectory, with the Nifty experiencing a 9% increase year-to-date, there has been a narrowing of valuations.
The Indian market is relatively cheap and the country's long-term appeal remains strong, according to Timothy Moe, Chief APAC Strategist at Goldman Sachs.
Moe highlighted that despite the market's upward trajectory, with the Nifty experiencing a 9% increase year-to-date, there has been a narrowing of valuations. The price-to-earnings ratio (P/E) has decreased from 24 times to approximately 20 times, offering a relatively less expensive entry point.
"We would be reasonably constructive on the investment flow outlook for India," Moe stated, cautioning, however, that this optimism is set against the backdrop of intense competition from other regions.
He highlighted specific investment themes, including the 'Make in India' initiative, the energy transition theme, and the defence spending theme. According to Moe, these themes offer substantial investment potential.
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On November 21, Mark Matthews of Bank Julius Baer & Co. also pointed out his preference for India over other emerging markets. "We like it, the price-earnings ratio is bang in line with the long-term average at about 19 times forward earnings and high teens, possibly even low 20s earnings growth, depending on what the oil price does. So why not be in India and we are,” he told CNBC-TV18.
Veteran investor Mark Mobius, often regarded as the founder of emerging market (EM) investing, also discussed the attractiveness of India. In fact, his fund's exposure to India as of September 27 was at 20%, at least double the 5-10% exposure it historically had.
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(Edited by : Shweta Mungre)
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