Indian stocks are the most expensive now. The stocks are trading at 34% premium to the region according to Citi investment research. Indian stocks are trading at 17.6 times expected earnings compared to a Chinese stocks that trade at 12.7 times expected earnings.

Inflation is the real problem in India. Everything is expensive starting from food to real estate. Companies are not able to pass the higher expenses to the consumer; so their profit margin is shrinking.

It is almost impossible for the Indian stock market to keep going up especially with this kind of valuation. It’s the time to watch your stock holdings and make sure you diversify your investments.