Indian equity market trading at high PE, broader trend positive: AMP Capital

Shane Oliver, head-investment strategy and chief economist at AMP Capital, on Tuesday, said that the broader Indian market trend is likely to remain up.

“The problem for the Indian share market is that it is trading on relatively high PEs, stretched valuations - that's often the case, but that could be a bit of a dampener. Once the cyclical recovery gets underway again, then other, more cyclical markets across Asia, maybe relative outperformers compared to the Indian share market, but in the short-term I would say, there is downside risk in the Indian share market as well as other global markets, but the broader trend is likely to remain up,” Oliver said, in an interview to CNBC-TV18.

On the US equity market, he said, “In the short-term, it's risk-off; the US share market has broken down through key technical levels. For a long time, it was held at the 50-day moving average, for about 8 occasions this year, it has bounced off that with day traders coming in to support the market - that has failed and we are now heading into correction territory, if not already there.”