Yesterday, Indian share market grabbed the headlines in the international media. What happened was that the index was was highest in the last 15 months.
Economic Times wrote:
The Sensex of the Bombay Stock Exchange and the National Stock Exchange’s Nifty rose by over 2% on Monday and have more than doubled in the past six months, causing market watchers to wonder if stock prices have discounted the economic recovery too quickly. Many fund managers privately voiced concerns that valuations are slowly expanding into a bubble, but added that strong liquidity and a positive mood in world markets could push stock prices higher for some more time.
It is really shocking because Indian economy is still suffering from the global recession. Export has suffered a lot in the last few months and there is no clear sign that economic growth in the country will again become good like the last few years. So, I think that it is really too high and the investors should become some cautious.