India has been overbought, warns Martin Currie's Graham

Martin Currie's Andy Graham has warned that Indian assets have been overbought, adding an expected increase in profits is unlikely to filter through to investors in the near future.

Graham (pictured), who manages the firm's Asia ex-Japan propositions, including the Pacific trust, said emerging markets equity managers had been lured into holding too much in Indian stocks due to disappointing performance from the other regions to which they traditionally allocate. India funds have returned as much as 60% since the election of pro-business Prime Minister Narendra Modi last year, according to FE data, prompting significant inflows and broader purchasing of Indian equities. Some of those buyers are purchasing Indian companies which have as much cyclical risk, but high...