Congratulations - India is second most expensive

Indian stock market is the second most expensive after China's in the Asian region, following strong rally driven by robust economic growth, a report says.

"India is the second most expensive market in Asia after China. However, unlike China, its momentum has deteriorated rather than improved from October," global financial service major Citigroup said in a research report.

Citigroup said November was a turbulent month for Asian markets with MSCI AC Asia Pacific index ending down 8.39 per cent.

All constituents of this index, except Indonesia, generated negative returns in the period under review. Japan is not a part of this index.

The monthly report reveals that India's earning sentiment had turned negative last month, though its price momentum is still going strong.

"India is supported by strong momentum in expectation of its strong economic growth," the report said.

Rising stock prices make the market more expensive, but it also implies improving long-term price momentum and all else being equal, stronger momentum characteristics, it added.

Last month, the benchmark Sensex had witnessed global pressure and the index lost 361.16 points in the period.

The index ended at 19,363.19 points after falling to a low of 18,182.83 in November, as investors turned cautious after Foreign Institutional Investors (FIIs) pulled out sizable funds from equity.