Monitoring the NaMo Bull Market in Stocks: Update as of January 2016

The NaMo bull market in stocks is at a critical point

Indian Stock Market Watch

As of end January, 2016, TMV/GNP is estimated  at 68%. The last time market capitalisation of BSE as % of GNP fell below 70% was in April 2014, the month before Narendra Modi came to power. 

Since the end of the global financial crisis TMV/GNP ratio fell for about two years - from  September 2010 to August 2012. During this phase, the low for the ratio was 57.5%.

Please refer to my blog of July 9, 2014 for the original note on using TMV/GNP ratio to gauge whether the market is cheap or expensive.