Record Sensex Gets Cheaper as Profit Upgrades Outpace Stocks

India’s stock-market rally has failed to keep up with the fastest increase in profit estimates since 2009, making shares cheaper even as the S&P BSE Sensex index rises to all-time highs.

While the benchmark gauge has gained 5.8 percent in the past two months and rose to a record yesterday, 12-month profit projections have climbed 7.2 percent, according to about 800 analyst forecasts compiled by Bloomberg. The Sensex is valued at 15.5 times estimated profit, down from this year’s high of 16.3.