India 2nd expensive stock market: Citigroup

By siliconindia   |   Wednesday, 12 December 2007, 18:13 IST
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Mumbai: A research by Citigroup, a global financial service company ranked Indian stock market as the second most expensive in the Asian region. China grabbed the first position. Strong and robust economic growth in India is the reason for India's growth, the study reported. "India is the second most expensive market in Asia after China. However, unlike China, its momentum has deteriorated rather than improved from October," said the report. According to Citigroup, November was uneven month for Asian Markets with MSCI AC Asia Pacific index ending down 8.39 percent. All constituents of this index, except Indonesia, generated negative returns in the period under review. The monthly report unveils that India's earning sentiment had turned negative previous month, though its price momentum is still going strong. "India is supported by strong momentum in expectation of its strong economic growth," the report said. Due to the rise in stock prices the market has become more expensive, but it also means a long-term improvement of price and will result in further growth of the market.