Risk-reward ratio turning unfavourable at the current levels of Indian markets: Experts
Published On: Monday, September 20, 2021 | By: Team KnowMyStock
Last week the Sensex almost touched 60,000, while the Nifty edged closer to 18,000. These levels would have been difficult to fathom when the Sensex dropped below 26,000 and the Nifty fell to 7,500-levels on March 23, 2020, at the peak of the Covid-19 sell-off. Market experts point out that such low levels were an aberration and one should not look at the gains made from these levels. But even from the valuation standpoint, stocks, across the board, are expensive. The bullish sentiment, especially towards Indian equities, stems from factors, such as the easy monetary stance of the US Fed and other central banks, the hope of strong revival in the economy and corporate earnings, strong domestic and retail flows, and reallocation of foreign flows due to the regulatory crackdown in China. Experts warn investors against going overboard as they see the risk-reward ratio turning unfavourable at the current levels.
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