New Delhi, July 30 -- India's Nifty 50 might be wearing the crown when it comes to premium valuations in Asia, but its recent performance has been anything but royal. Despite its lofty valuation, the benchmark index of the National Stock Exchange has risen just about 1% over the last three months.

Once regarded as a resilient outperformer in the region, the Nifty 50 has recently lost its edge, slipping into the underperformer bracket and trailing not only its Asian peers, but also several developed markets.

According to Bloomberg data, the Nifty 50 is currently trading at a steep price-to-earnings ratio of 24.2 times, making it one of the priciest markets in Asia. For context, Japan's Nikkei is at 19x, Taiwan's Taiex at 19.2x, China's C...