Paper chase: $70 bn in next 12 months

THE MASSIVE SUPPLY of paper into the Indian stock market is expected to continue with up to $70 billion estimated to come in over the next 12 months, according to Jefferies India. That's a whopping ₹6.2 lakh crore at the very least. The supply includes initial public offerings, qualified institutional placements, and promoter/private equity blocks. The figure is the same as in the previous 12 months.

- KISHOR KADAM

"Clearly the attraction for corporates as well as for existing private equity investors is that they can continue to raise capital at attractive valuations, strategists at the brokerage say. MSCI India, they point out, continues to trade at a price-earnings multiple of 22x forward earnings or 25 times, if financials are excluded. The only caveat is a market collapse, they not