Modi Win Turns Indian Stocks Into Asia's Most Expensive: Chart

Modi's BJP Wins Majority in Uttar Pradesh

India’s Nifty 50 Index rallied to a record on Tuesday after Prime Minister Narendra Modi’s resounding victory in state elections. That surge drove it above Japan as the most expensive market in Asia, according to data compiled by Bloomberg, as India’s one-year forward price-to-earnings ratio climbed to its highest since 2010. That sort of stretched valuation might encourage some profit taking over the coming months, especially amid concern that the economic fundamentals aren’t great, said Chokkalingam G, managing director at Equinomics Research & Advisory.