The meltdown

Market correction was long overdue

The spread of coronavirus and turmoil in energy markets have combined to create a perfect storm across the global system. Equity indices have gone into a tailspin, with foreign portfolio investors fleeing to the safety of hard-currency bonds. In one way, the YES Bank crisis just provided a trigger for jittery investors to start selling. Indian equities have been considered overvalued for several years, given the economic weakness and poor earnings growth. A couple of weeks ago, the Nifty 50 was trading at a price-to-earnings ratio of 27 while earnings growth was barely in double-digits.
 
However, the speed of