HSBC: Why Indian stocks are still pricey (and that's okay)
Despite some big investors pulling out lately, HSBC says India's high stock prices make sense.
Their new report points to India's strong distribution networks, simpler business setups, and a growing crowd of everyday investors as the main reasons.
Even with talk of monopolies and whether earnings need to catch up, these factors keep the market attractive.
What sets India apart?
According to HSBC, companies like Hindustan Unilever have huge reach, making it tough for newcomers to break in.
Plus, Indian businesses tend to be less complicated than those in places like North Asia—this means they can use money more efficiently and get better returns.
Add in more retail investors jumping in (helping push the Nifty 50's price-to-earnings ratio near global highs), and you've got a recipe for resilient—and expensive—stocks.