Last Updated on Oct 12, 2021 by Manonmayi

The ability of the Indian equity market to break through the price barrier and continue to set new highs has definitely been in the spotlight. The second wave, the China crisis, and even the US Federal Reserve’s tapering of the bond-buying programme could not dissuade Dalal Street. 

Increased inflation, shrinking companies’ margins, and a slow vaccination rate were also initially unable to prevent an 18-mth-long bull market

The breaking down of the Indian stock market has raised concerns about the market’s values being too high to be healthy. The 1-yr and 2-yr forward PE multiples of the Nifty50 are the highest among emerging market economies. 


The rapidly declining equity risk premia for India reflects the growing optimism for the Indian stock market. According to the RBI data, India’s equity risk premia fell to 3.2% in September 2020 from 6.3% in Mar 2020.

The central bank also used the term “exuberance” to describe activities in the IPO market. So far, in 2021-2022, 22 IPOs have been registered, raising Rs. 46,316 cr, as compared to Rs. 1,798 cr during the same period last year. 

Analysts believe that the market will need a healthy correction in the near future to eliminate the weakness that is accumulating in various areas.

Manonmayi
guest
1 Comment
Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.