Sit Tight: India valuations better than several countries

While a strong closing for the week in the US markets was expected to have a ripple effect in India, the BSE and NSE opened higher but have slipped into the red during the course of the day - led by Reliance which was trading nearly 4 percent lower at 11.15 a.m. on Monday.

However, Punita Kumar Sinha, senior managing director of the Blackstone Group says the pullback in Europe and the US is not durable, while India could be the one outperforming.

“I don’t think the pullback is durable. Problems in Europe and the US are long term ones,” Sinha told CNBC-TV18 in an interview.

But, Sinha expressed positivity about the valuation in India which even though low from its own history at 12 or 13, are better positioned compared to several countries’ valuations which are at its bottom ranges.

“People still think India is trading at a slight premium to its own history, even at a premium to emerging markets,” Sinha said in the interview.

According to Sinha, India’s valuations are and have been very attractive for a while and while she doesn’t see India decoupling from the world markets, she believes domestic investors could help buoy its markets.

“I dont see India going to lows if the rest of the world is not going to lows, but if the rest of the markets are also correcting then yes, India could go to its lows,” she says.

However, if India’s investors are drawn into equities markets India could follow its own upward trend. “If domestic investors step in “India could outperform if global markets stabilise” she says.

Watch Punita Kumar Sinha’s interview with CNBC-TV18: