"People are not buying companies because they believe in the business or valuation. People are buying because their friend bought something and it went up 30-50% or higher. That is a recipe for disaster. Eventually it will come back to bite us," says Nikhil Kamath of Zerodha.
While FY21 was the worst year for the economy since Independence, it was the best-ever for equity investors. The Nifty 50 rose over 100% even though Indias GDP growth shrunk to a negative 7.3% during the period. So, how have the benchmark indices performed so well despite the dismal state of economic recovery and what is the road ahead?