Indian markets have proven resilient over the last six months. Declines have been shallow and short-lived since the collapse in March 2020
Over the past six months, going short on the Indian market has been a fool’s errand. Rising interest rates, higher inflation numbers and peak valuations have proved insufficient to dent the index rally that started after the collapse in March 2020. Since then, market declines have been shallow and short-lived. Buyers have been waiting on the sidelines.
As things stand, the Nifty 50 quotes as a price multiple of 22 times while its midcap counterpart the Nifty Midcap 100 is at a 26 multiple. Both are the highest valuation numbers seen in the last decade and look set to sustain.