Is SENSEX getting ready for a correction?TMV/GNP was in the 88% range last in July-August 2018. Interesting months ahead, surely. Will the measure climb to the 90-100% range? The market tends to correct when the index gets to the 80-90% level: this happened in February of 2015 and January 2018.Given record low interest rates in India and worldwide, hyper accommodative monetary and fiscal policy, and vaccines galore to hit the streets, I would not rule out a rise in TMV/GNP beyond 90%.
See my blog of July 9, 2014 for the original note on using TMV/GNP ratio to gauge whether the market is cheap or expensive, and my monthly blogs on this subject
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