Markets are not overvalued because valuations are backed by good economic growth prospects, Mr Jean-Christophe Gougeon, Managing Director for South East Asia of BNP Paribas Personal Investors, said.
Growth between six and seven per cent would justify the current valuations.
India, China and Indonesia are emerging as the major investment destinations in Asia. Relatively, India is below China in valuations, he added.
Reflecting the surge in foreign capital investments into the country, the recently started joint venture, BNP Paribas Securities India Ltd is accounting for 15 per cent of the revenue of Geojit BNP Paribas.
The business of BNP Paribas Securities, which offers a platform for FIIs to invest into the Indian capital markets, is expected to grow rapidly in the coming months.
Another high-growth area identified by Geojit is the marketing of the trading and settlement platform which has been developed by Geojit Technologies.
Currently, the company is customising the platform for BNP Paribas operations to suit the demands of the European markets.
The platform is also being installed in the UAE, Saudi Arabia and Oman markets.
Geojit Technologies expects revenue for the current year to be around Rs 10 crore.
This is very good topic today. I won't say valuation are justified for whole market but there are stocks which are still available at good prices. Valuation criteria is stock specific. Most of current valuation in India stock is factoring at least 20% growth going forward in net profit and revenue.
Might happen for Infra, Retail,IT sectors but not too convinced that 20% cumulative growth for 3 years is possible .
In a nutshell good stock picking is key these days and going forward to reduce any downward risk.