Market capitalization of Indian stocks as percentage of GNP (TMV/GNP) is estimated at the highest level of 95% since Narendra Modi came to power. Similar levels were seen in January and August of 2018. Are we in for a correction in the market or are we going to see market entering bubble territory with the ratio crossing 100%?
See my comments for the November month. Given the strength of the US market, I would see a further rise to the 100% area for TMV/GNP backed by a further rise in the market. But I believe investors need to start looking at their portfolios and making sure that they have quality names in their portfolios.
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