Too much, too fast

Tepid earnings not in sync with stock prices, valuations

The stock market rally has surprised analysts and fund managers in more ways than one. Inflows from global and domestic investors continue to keep the momentum going and prices high, and the rise of mid- and small-cap stocks has been spectacular; yet, many investors in equity and mutual funds find their portfolios not doing as well as the markets seem to be doing. The biggest puzzle for analysts and fund managers is that the tepid corporate earnings in the March 2017 quarter do not seem to be in sync with current prices and valuations. This calendar, the Sensex has rallied