India’s market is in a vulnerable place right now, given the slowdown in earnings and still-high valuations, Saurabh Mukherjea, Founder and CIO of Marcellus Investment Managers, told CNBC’s Martin Soong on Squawk Box Asia.
➡️ We’ve seen a dramatic deceleration in earnings growth over the past four or five quarters — the most recent was as low as 4%. Yet benchmark valuations remain around 21–22 times forward earnings, which is high by Indian standards, he added.
➡️ With the RBI doing what it can and economic momentum slowing, he expects a rotation toward high-quality large caps, which remain relatively well-priced. But without progress on a U.S.-India FTA, both the rupee and Indian stock market could face a pullback.
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