The Sensex, which touched a historic high of 32,686 points on 2 August, has been on a declining trend. For the week ended on Friday, the Sensex recorded first fall in six weeks, by plunging 1,111.82 points, or 3.43%. Commenting on asset valuation, Subramanian said the price-earning ratios of stocks are very high, well above the historic average, and close to the level seen in 2007-08. These valuations should not be seen as signalling something very important, Subramanian said, adding it could just be temporary liquidity. “We know from all the history that when valuation reach such high level there is a tendency for them to revert back to normal levels.

Source: Mint August 11, 2017 14:26 UTC