Sensex at 30,000: What’s next, when to invest and is there a bubble?

Here is a compilation of what leading experts and market veterans think about recent rally

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After rallying nearly 1.5% since the start of the week, the markets are consolidating in trade on Thursday. Buoyed by liquidity, developments at the global levels and better-than-expected March quarter results of companies, the Nifty50 and the S&P BSE Sensex have scaled new highs.

Will this momentum continue? Here is a quick compilation of what leading experts and market veterans think about the recent rally. They also highlight their concerns.

RAAMDEO AGRAWAL, CO-FOUNDER, MOTILAL OSWAL FINANCIAL SERVICES

It is an iconic closing for the Sensex. However, concerns still remain as to what will happen to the fundamentals as the valuations are getting stretched. The recent movement has been driven by liquidity. The political situation in India has become stable and recent elections show the popularity of BJP in the country. The markets are excited about what Mr Modi will do with so much political capital in his hand and look forward to more reforms going ahead. One can invest at the current levels from three – five year perspective.
S NAREN, ED & CIO, ICICI PRUDENTIAL AMC

We believe that we are in the midst of a good economic cycle. However, markets have gone up much faster than the change in economic cycle. We believe price-to-earnings (PE) for the markets looks expensive but price-to-book value and market-cap to GDP ratio is above average but not significantly higher than average level.

NIRMAL JAIN, CHAIRMAN, IIFL GROUP

I think the markets look good from a medium-to-long term perspective. The government is doing a great job by putting the right policies in place. If one invests for three years, investors will make money. Once the corporate earnings start growing at 15 – 20 per cent, the market levels will reflect that going ahead. (READMORE…)

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