“To us, this trend is indicative of investors gradually realizing that earnings are yet to bottom out and the recovery is going to be gradual and measured,” analysts Bharat Iyer, Sunil Garg and Bijay Kumar said in a note.

For instance, MSCI India currently trades at 17.8 times forward earnings, or 26% above its long-term average. Moreover, looking at India ETFs, EPI is trading at a 16.0 P/E, INDY is showing a 20.8 P/E and PIN has a 18.9 P/E. In contrast, the S&P 500 Index is traing at a 17.2 P/E and the MSCI Emerging Markets Index shows a cheaper 12.8 P/E.

WisdomTree India Earnings Fund

For more information on India, visit our India category.

Max Chen contributed to this article.

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