A roaring rally

Investors should not lose sight of fundamentals

The Sensex achieved a statistical milestone on Thursday as it crossed the 50,000 mark before profit-booking pulled it down. At its intraday high, the index has nearly doubled from its low in March last year, when corporate India was deeply concerned over business activities, which came to a standstill due to pandemic-induced lockdowns. The proximate cause for optimism now is the anticipation of good third-quarter corporate results, and the introduction of market-friendly measures in the forthcoming Budget. However, the disconnection between buoyant market sentiment and the real economy that’s limping back to normal is stark. The market price-earnings ratio for