Despite pricy valuations of
Indian market at around 20 times FY17 earnings, most of the analysts I have
talked to are not too worried and feel that the market will continue to receive
steady flow of funds due to post-monsoon impact, on-demand scenario coupled with
Seventh Pay Commission largesse and steadily improving rural incomes, all time
high forex reserves, continued emphasis on reforms with GST already on road to
implementation, continuation of softer monetary policy of RBI in view of
softening inflation in the growth inflation dynamics, and expectations of
stability and improvement in corporate earnings as a result of steady growth in
GDP.
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