Core Viewpoint - The article analyzes the current valuation levels of the Indian stock market, particularly the SENSEX30 index, and discusses the performance and outlook of two Indian funds amid changing market conditions [5][6][15]. Group 1: Indian Market Valuation - The SENSEX30 index has shown a one-year return of 1.79%, a three-year annualized return of 16.31%, a five-year annualized return of 18.89%, and a ten-year annualized return of 12.71% [6]. - As of July 18, 2025, the TTM price-to-earnings (P/E) ratio is 23.83, which is at the 56.24th percentile of the past ten years, indicating relatively stable valuation since 2022 [8]. - The price-to-book (P/B) ratio stands at 3.82, at the 94.43rd percentile, suggesting a high valuation compared to historical levels [9]. - The dividend yield is 1.20%, positioned at the 56.62nd percentile historically [11]. - The return on equity (ROE) for the SENSEX30 index is calculated at 16.03%, with a suggestion that a lower P/E ratio below 16 would be more favorable [14]. Group 2: Fund Performance - The ICBC India Market RMB fund, a QDII-FOF fund, has a management fee of 1.2% per year and a one-year return of -5.48%, while its two-year and three-year returns are 15.64% and 36.55%, respectively [16][17]. - The Manulife India Equity fund, a QDII ordinary equity fund, has a management fee of 1.2% per year and a one-year return of -1.71%, with two-year and three-year returns of 21.60% and 44.81%, respectively [19]. - The fund managers of Manulife provided insights on market conditions, noting that the Indian market showed resilience amid global tariff negotiations and strong economic fundamentals, including a 7.4% year-on-year GDP growth in Q1 2025 [24][25]. Group 3: Market Outlook - The Indian market's risk appetite improved due to favorable economic indicators and a shift from premium to discount valuations, leading to foreign capital inflows [25]. - The overall investment strategy for the Manulife fund focuses on concentrated stock selection with diversified industry exposure, adjusting to market conditions by increasing exposure to public utilities and new consumption sectors [26]. - Despite the positive outlook, concerns remain regarding high valuations and potential market volatility, with warnings about the risks associated with high P/E ratios [31].