India overtakes China in Valuation in MSCI Asia portfolio

For the first time (possibly), Indian has over taken China in terms of valuation in the MSCI Asia portfolio. On 16th Nov 2007, FY08E PE of India is 25.4 compared to 23.9 of that of China.

Lets take a look at two other snap shots. On 14th Nov 2007, FY08E PE of India was 24.4 compared to 25.9 of that of China, India closing in. On 30th Oct 2007, no one expected that this would happen as the valuation was wide. It was 24.8 for India compared to 29.7 of that of China. This has been possible because the Chinese markets have given away considerably while Indian markets held on.

Infact, the one month returns indicate that India has given a return of +4.3% with Malaysia at +0.7%. These are the only two Asian markets with one month returns positive.

Third observation is that the YTD returns in MSCI Asia portfolio are lcosing into that of Chinese. Indian portfoli has given 62% return while Chinese stocks have given 65%. Indonesia is third at 45%.

This shows the focus India is drawing for global investors.