New Delhi, May 27 -- Given that corporate earnings growth in India has been stable, the exorbitant risk premium-extra returns that investors expect from riskier assets-linked to Indian equities is unreasonable, global brokerage UBS Securities said.

India traditionally carried a 20-25% risk premium versus other emerging markets. However, recently, that premium has soared to 60%, a level unjustified by the current pace of corporate earnings growth, Sunil Tirumalai, head of Emerging Markets and Asia Equity Strategy at UBS Securities, said during a virtual media briefing on Tuesday.

Indian equities often carry a high risk premium, driven by their long-term growth story and the appeal of a young, consumption-led economy. But alongside this o...