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With India’s market cap to GDP ratio climbing to 1.2, valuations getting stretched

With India’s market cap to GDP ratio climbing to 1.2, valuations getting stretched

New Delhi, Nov 30 (SocialNews.XYZ) With India’s market cap touching $4 trillion and the market cap GDP ratio climbing to 1.2, valuations are getting stretched, says V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services. But in the short run, the market is likely to move ahead of fundamentals, he added.

The market construct has turned clearly bullish aided by favourable global and domestic clues. A significant trend in the market is the comeback of Bank Nifty. FIIs turning buyers for five days in a row and DIIs buying aggressively is a strong trend that can take the Nifty past the record Nifty high of 2022 soon. The leader of the rally is likely to be banking assisted by IT, he said.

 

Global cues are supportive with positive news from the US market where growth is strong and inflation is trending down. India’s Q2 GDP numbers expected Thursday will be better than expected. If these good macros are supported by Thursday's exit poll results coming in tune with market expectations, a rally to record highs can happen soon, he said.

BSE Sensex is down 110 points at 66,791 points on Thursday. Tata Motors is down more than 1 per cent, ICICI Bank is down 1 per cent.

Source: IANS

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With India’s market cap to GDP ratio climbing to 1.2, valuations getting stretched

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