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View Full Series (5 min). Learn more at www. Choose your reason below and click on the Report button. This will alert our moderators to pharmacology actionBenchmarks Nifty17,591. Given the sharp fall in our GDP last year and the sharp bounce back, look at the valuation story like a PE growth or the PEG ratio, which when plugged in the expected growth of high single digit for the following year, make those valuations look too reasonable.

Also, a lot of IPOs coming into the market are from new sectors where historic valuation models do not apply. The market is discovering new valuation dynamics and that is where the story lies, says Sunil Subramaniam, MD, Sundaram AMC Banking stocks are contributing to Nifty gains today.

What magnetic resonance imaging you think is lending the market this kind of strength since globally we are not seeing this kind of strength and India is the stark outperformer. I think we are deriving our strength from the fact that we are probably the country which has shown the greatest improvement in vaccination.

In terms of controlling the second wave and muting the third wave, the pace of vaccination and sero prevalence, there is a stark difference because the western world is experiencing the impact of the delta but rp30 are not.

There is also the fact that the world markets may not be reacting USP and Ferrous Fumarate Tablets (Larin Fe)- FDA well but the world growth story is continuing to have a strong underpinning and India has managed to grab the export pie.

Exports have improved as we have managed to gain a share from China plus one strategy and that has been helped by the government successfully implementing its PLI scheme. The export momentum and the PLI momentum means that domestically, there is going to be capex from the private sector.

As a result, the government capex plus private sector announcements of capex gives a strong bullish undertone to all the suppliers through capital goods and that is a great thing.

Finally, these export oriented industries may not necessarily be listed on the stock market but the services sector is going to benefit from this export and capex push. There are a lot of reasons for foreign investors to invest in India and at the same time, domestic investors are also investing in stock markets because interest rates are so low.

All of these factors put together is what has given us this bullish undertone to the India story. Could valuations spoil this party. The PE that we are trading at right now is extremely high and at the same time, India Inc has managed to clean up its balance sheet very well and that could be an added measure.

I do not think so because the market is moving to new dynamics. Second, given the sharp fall in our GDP last year and the sharp bounce back, it is very important to look at it as valuation story like a PE growth or the PEG ratio, which when plugged in the expected growth of high single digit for the following year, make those valuations look too reasonable.

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