India has been the worst performer among emerging market peers over the last one month. Yet, it's the only country to command a premium to its 10-year average.
The Indian indices fell 8 percent last month compared with a 3 percent decline in the MSCI Emerging Market Index, Bloomberg data showed. Equity benchmarks in China, South Korea and Taiwan fell in the range of 2-6 percent during the period.
India, however, has a price-to-earnings multiple of 21.6 compared to its 10-year average P/E of 18.9 times, a premium of 14 percent, according to data compiled by BloombergQuint.
This suggests that the worst is not over for the Indian markets and the indices would continue to witness a downside, according to brokerages CLSA and Bank of America Merrill Lynch.
CLSA said rising interest rates and political uncertainties aren't fully absorbed by the markets.
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