New Delhi, June 22 -- India's equity market may require a fresh valuation framework rather than comparisons with historical averages, according to Amit Bhartia, founder of Delorean Partners and portfolio manager at Willow Run Capital.

In a recent LinkedIn post, Bhartia argued that investors are asking the wrong question when they conclude that India is attractively valued simply because its price-to-earnings (P/E) premium to the US and emerging markets has fallen below long-term averages. Instead, he said investors should assess whether the current economic, earnings, and geopolitical environment justifies the same valuation multiples that prevailed in the past.

Bhartia began his argument by citing renowned statistician John Tukey's obs...