Bric countries investment-rich but Indian market overvalued

Although managers have been increasing investment into Brazil, Russia, India and China (Bric countries), Indian equity valuations are starting to look stretched, according to Morley Fund Management. Niall Paul, head of emerging markets and Asia at Morley Fund Management, says: "Out of the Bric countries India is overvalued at the moment. The Indian market has on average a P/E ratio of 18.5 times compared to the MSCI Global Emerging Markets index of 14.8." However, one company Paul believes has potential in India is technology outsourcing group Infofys, in which the Aviva Emerging C...