Indian markets not in "bubble" zone: Mark Mobius

How 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.

Mobius 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."

Mobius 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."