Indian Real Estate Stocks are Overvalued. – Samir Arora

Samir Arora the infamous fund manager of Alliance Capital Limited during the Dot Com Boom who is now a Singapore based FII said to CNBC TV 18 that the Indian Real Estate Stocks are overvalued.

He also said that Indian market looked over valued because of the fundamental flaw in how the SENSEX stocks are chosen. Sensex only has the high growth and market value stocks, which always trade at higher PE multiple and hence it looks for an outsider that Indian stock market is over valued. However, if you exclude those stocks, then other Indian stocks are available at the same PE multiple as their peers in China, Russia and Brazil.