are large foreign investors aproaching the market before
earnings and with the Sensex above 12,000 levels? Mark
Mobius, MD of Templeton Asset Management says that while
momentum is very high in India, the markets are yet not
in a bubble zone.
said, "India has relatively high price to earning
ratios, high price to book value ratios and so forth.
I am not saying we are out of India, we are still buying
some stocks but generally speaking, if you compare it
with Brazil or with Russia and of course with China, India
is more expensive."
further said, "I think it will be difficult in view
of the valuations but on these markets, once momentum
gets built-up, then
you have a lot of people rushing into the market and it
can get really hard and very, very overpriced. I wouldn't
say it is not in the Dot Com boom category yet, but we
have to watch it carefully."