India Stocks Overvalued?

Via Galatime and Bloomberg , chart courtesy of Fullermoney:

Biggest India Bull Duggal May Ask Holders to Cash Out

Dec. 6 (Bloomberg) -- India's biggest bull is on the verge of becoming its biggest bear. Sanjiv Duggal, who manages the world's largest holding of Indian equities, may even urge his clients to cash out.

``Investors aren't factoring in earnings and news flows, but valuing people's dreams,'' said Duggal, 43, who oversees about $11 billion in Indian equities as investment director at HSBC Holdings Plc's Halbis Capital Management in Singapore. ``The risk-reward ratio is not favorable.

Speaking as someone who has followed and been bullish on Indian markets since 2004 I found this article very interesting. India has many years of bull markets ahead but the action will include periods of extreme volatility. Knowing when one of the smartest managers of Indian equities is getting cautious is a useful bit of information.
I also found it remarkably ethical behavior by Sanjiv Duggal to be raising these issues of overvaluation about his own fund knowing it could actually reduce his business. That kind of honesty and candor is practically unheard of in fund management.
Thanks to Kaushik Gala for pointing out this article.