Understanding the Stability of India's Cost of Equity According to EY
Sunday, 21 July 2024, 13:26
Overview of Cost of Equity in India
The average cost of equity in India currently sits at 14.2%, reflecting a rise of 40 basis points since 2021. This increase demonstrates the market's resilience and maturity amidst economic fluctuations.
Equity Market Risk Premium Trends
- The equity market risk premium has been consistently decreasing.
- This trend indicates a positive sentiment among investors.
- The stability observed may encourage more investments in Indian equities.
Conclusion
Ultimately, the survey from EY showcases a stable cost of equity environment in India, supporting the notion of a mature and resilient market. As the equity market risk premium continues to shrink, stakeholders can expect a favorable investment climate moving forward.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.