Even as the Nifty 50 has soared from its March 23, 2020 low of 7,610 to 14,347, its trailing price-to-earnings (P/E) ratio has skyrocketed from 17.15 to 39.45. Many investors today are worried that after this run-up, the markets have turned expensive and could be poised for a major correction.
The bulls, however, argue that the market is being driven by the flush of liquidity that has been injected by central banks and governments and through both monetary and fiscal routes. These policies, they say, are unlikely to be reversed anytime soon. Another oft-heard argument in favour of ...
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