Markets in the bubble zone

With only a few companies' EPS growth at over 26 per cent, the index seems grossly overvalued

Every one of the Nifty set of 50 large companies has declared results for the June quarter (Q1), 2017-18. A look through the numbers is illuminating, given the breadth of the index and the fact that all are market leaders. Overall, revenue growth is at nine per cent year-on-year (y-o-y) and net profit growth is 0.9 per cent. There are two turnarounds. Tata Steel has moved from a loss in the corresponding quarter of the last financial year to a profit in Q1, FY18. Sun Pharmaceutical, on the other hand, has moved from profit to loss in the same period. 

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