Better Earnings Outlook Driving Nifty

From 25,000 levels to 60,000 within 18 months. Do you think the index has run too fast too soon? The world is awash with liquidity, which is chasing growth. India is a high-growth market. Indian corporates have superior earnings quality, and they are performing well on all the parameters. The earnings outlook has improved, which has led to rerating of many sectors in the past year. Also, the macroeconomic outlook is better. India’s current account deficit, foreign exchange reserves, liquidity in the banking system, interest rates and inflation are indicating a stable economic outlook. So, the index upmove is backed by strong reasons. Do you think with a trailing one-year price-earnings multiple of 32 and price-to-book of over 4, the Nifty valuations are justified? The market ignores the past, so trailing multiples are not the right indicators for a forward-looking market. Due to...