Current valuations in Indian market are little more than they should be: Russell Napier, ERIC

According to him, the way RBI has handled currency pressure is incredible and has kept India out of any trouble so far. The world is looking at Indian market closely at the moment. At the same time, India needs more capital to make things a little more comfortable and hassle-free.

ERIC Co-Founder, Russell Napier, was in talk with ET Now and discussed market condition in India.

India's Stance In EM Space

A lot has been happening in the financial industry across the world, but Napier thinks that India's position is much better than all other Asian countries. According to him, the way RBI has handled currency pressure is incredible and has kept India out of any trouble so far. The world is looking at Indian market closely at the moment. At the same time, India needs more capital to make things a little more comfortable and hassle-free.

It's not that Indian market is perfectly shaped at the moment, but it's better than all other emerging countries. Napier thinks that equity valuation in the Indian market is a bit excessive. It's more or less repeat what happened in 1982, 1998 and 2008. No emerging market is capable of avoiding this trend at this moment.

With rising uncertainty in the Asian market, Napier thinks that investors should back the dollar. It's more stable than any other currency in the world as of now. So, people who are looking forward to parking their money should give the dollar the top priority. Apart from the dollar, one other currency that has done better than most others is Japan's Yen. It can be a good bet as well.

Whatever has happened in China over the last few weeks, has forced investors to change their stand on emerging market currencies. Earlier, investors were backing Yuan and Rupee, but now they are moving away from them. For them, Yen can be a value for money. If taken into consideration the present market condition, it looks like Yen will have a more stable future than other emerging market currencies.

Towards the end of the interview, he said that Japanese equities can be a good option for long-term investment for those who don't want to take excessive risk.