Geopolitical tensions between Israel and Iran and a rise in foreign outflows have played a major role in the drop in Indian equities this week

Nifty is trading at 21.5 times its one-year forward earnings, which is above its historical average of 20.4 times. India is being perceived as relatively expensive market compared with other emerging market peers.

Stock Market LIVE Updates | The blue-chip indices Sensex and Nifty50 erased day’s gains to drop over 700 points; Nifty 50 slips below 25,150. The blue-chip indices traded lower for the fifth consecutive session on Friday,

The trends on Gift Nifty also indicate a negative start for the Indian benchmark index. The Gift Nifty was trading around 25,425 level, a discount of nearly 50 points from the Nifty futures’ previous close.

India stocks were lower after the close on Thursday, as losses in the Real Estate, Capital Goods and Auto sectors led shares lower. At the close in NSE, the Nifty 50 fell 2.12%, while the BSE Sensex 30 index lost 2.