Rupee has lost 42% of its value against the Dollar. Yet it's one of Asia's Most Stable Currencies.
Sounds strange, right?
Here's what the last 10 years of data shows:
🇨🇳 Chinese Yuan: 4.9%
🇮🇳 Indian Rupee: 6.1%
🇰🇷 Korean Won: 9.0%
🇮🇩 Indonesian Rupiah: 10.3%
These numbers show how much each currency moves up and down.
The rupee has been falling against the dollar, but mostly without big, sudden swings.
Just because a currency is stable doesn't mean it's getting stronger. And the Indian rupee is a perfect example.
Indian stock market valuations are at their lowest in 6 years but India is still one of the most expensive markets in the world.
A look at forward P/E ratios across markets:
🇮🇳 India: 18.5x
🇺🇸 USA: 18.8x
🌍 World: 17.6x
🇨🇳 China: 9.2x
🌏 Emerging Markets: 8.7x
India's valuation has fallen from 24.5x in September 2024 to 18.5x but it still trades at more than twice the valuation of emerging markets.
Even the US market trades at just a slightly higher valuation than India.
Indian equities have historically commanded a premium due to stronger growth expectations, relatively stable corporate earnings and a large domestic investor base.
However, with earnings growth slowing, the premium becomes harder to justify.
The fall in valuations has made Indian equities cheaper compared to their own history, but not necessarily cheap compared to global markets.
The next phase of market returns may depend more on earnings growth than on further valuation expansion.
If you miss just 10 of Nifty's best days and your annual return falls from 8.9% to 4.7%.
And miss 20 days? Just 1.9%.
Stop trying to predict every correction.
Keep your SIPs running, maintain an emergency fund and stay invested according to your goals.
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भारत के पास क्या है??
call me whatever:
modi, bjp laakh bura hain
but they are still better than congress, aap, sp type parties and their leaders
politics has always been about choosing a lesser devil
all of them are devils; people of the nation always choose a lesser devil