On 18 December, the price to earnings (PE) ratio of the Nifty 50 stock market index reached an all-time high of 37.84. The average yearly PE ratio of the Nifty 50 has been largely rising since 2013. Despite this evidence, many stock market participants refuse to believe that the Indian stock market is now in bubble territory. Let’s see how this bubble triangle applies to the Indian stock market. If all these factors don’t make for a stock market bubble, one doesn’t know what does.

Source: Mint December 27, 2020 15:11 UTC