Sebi Chairperson Madhabi Puri Buch highlighted the robust valuations in Indian capital markets, attributing them to foreign investors' bullish outlook on the country's economic growth. She noted increased interest among foreign investors due to India's accelerating economy, evident in metrics like GST collections, advance tax payments, and energy consumption.

Buch cited impressive figures such as 11.5% growth in GST collections to Rs 1.78 lakh crore in March and a 19.88% rise in net direct tax collection to over Rs 18.90 lakh crore. This heightened foreign investor interest has propelled market capitalization in equities to over Rs 378 lakh crore, a significant increase from Rs 74 lakh crore a decade ago, now aligning with the overall GDP level.

In FY24, Indian entities raised Rs 10.5 lakh crore from markets through equity and bond issuances, with over Rs 8 lakh crore from bonds. Bond issuances now constitute more than 62% of total annual bank lending.

Despite concerns about India's expensive market, Buch emphasized that foreign investment continues due to global optimism and trust in India, reflected in high market multiples. The MSCI India index's forward price-to-earnings ratio stood at 22.2 in February 2024, surpassing similar indices worldwide, indicating strong investor confidence in India's economic prospects.

Sebi Chairperson Madhabi Puri Buch highlighted the robust valuations in Indian capital markets, attributing them to foreign investors' bullish outlook on the country's economic growth. She noted increased interest among foreign investors due to India's accelerating economy, evident in metrics like GST collections, advance tax payments, and energy consumption.

Buch cited impressive figures such as 11.5% growth in GST collections to Rs 1.78 lakh crore in March and a 19.88% rise in net direct tax collection to over Rs 18.90 lakh crore. This heightened foreign investor interest has propelled market capitalization in equities to over Rs 378 lakh crore, a significant increase from Rs 74 lakh crore a decade ago, now aligning with the overall GDP level.

In FY24, Indian entities raised Rs 10.5 lakh crore from markets through equity and bond issuances, with over Rs 8 lakh crore from bonds. Bond issuances now constitute more than 62% of total annual bank lending.

Despite concerns about India's expensive market, Buch emphasized that foreign investment continues due to global optimism and trust in India, reflected in high market multiples. The MSCI India index's forward price-to-earnings ratio stood at 22.2 in February 2024, surpassing similar indices worldwide, indicating strong investor confidence in India's economic prospects.