The premium of India’s equity-market valuation over its Chinese equivalent is now shrinking as stock prices correct on Dalal Street while they rally in Shanghai.
India’s premium over China fell to 54.2 per cent from 82.3 per cent at the end of August and a record high of 124 per cent at the end of September 2021.
For comparison, the Sensex valuation premium over China was, on average, 48 per cent in the past 15 years.
The trailing price-earnings (PE) multiple of China’s equity benchmark, Shanghai Composite Index, is up 17 per cent in September, while there
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