Despite a 18 per cent surge in 2023, Nifty is trading at a 12-month forward PE ratio of 19 times, which is at a discount to its 10-year average of 20 times.
The exuberance of Indian stock markets is well-timed when it comes to confidence, the all-important ingredient of economic growth. In the last few years, the rapid growth of the Indian startup sector spread optimism among the wider business community. During 2020-22, when the economy was roiled by Covid and consequent lockdowns, the rise in the number of unicorns at a fast clip did much to spread cheer - and some jealousy - in the business community.