Mumbai, Jan. 2 -- The domestic equity markets appear less expensive than their US counterparts when compared on the market capitalisation to GDP (Mcap-to-GDP) metric, according to a report by Axis Direct.

The report highlighted that while Indian markets are trading above their long-term average on this valuation indicator, they remain fairly valued when seen in the context of earnings momentum, bond yield trends and projected economic growth.

It stated, "In terms of Mcap to GDP, India Stands Less Expensive than the US Market".

The report noted that India's total market capitalisation to GDP is currently trading at 137 per cent. This level is above the long-term average, which has been recalibrated after the government released the revi...