Amid fears of a global slowdown, India is among a few major stock markets that delivered positive returns in 2022 so far. Due to this, India's valuations vis-à-vis emerging markets have jumped to historic high and its market capitalisation (m-cap) as a percentage of the world market cap is also at a record level. With a positive earnings momentum in the current cycle, it sees higher levels of the m-cap to GDP ratio in the coming quarters. If it is more than 1, equity investment is deemed expensive, unattractive. The historical average share for India in the world m-cap stands at 2.5 per cent. PE, PBV multiples Nifty traded at a 12-month forward PE of 19.6 times as of October end, which was near its long-term average of of 19.7 times. Source: BusinessToday