Pursuits
World-Beating Stock Rally Hinges on Corporate India Profits
- Gap between share prices and earnings has widened since 2014
- Equity valuations rose to highest level since 2010 in March
The Story Behind India's World-Beating Stock Rally
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The fate of India’s world-beating stock-market rally hinges on a routine event: earnings season.
Equities are trading near record levels in Mumbai, bolstered by bets that a state election victory will embolden Prime Minister Narendra Modi to push ahead with his reform agenda. Valuations rose to the highest level since 2010 at the end of March and the S&P BSE Sensex index is the top-performing gauge this year among the world’s 10 biggest stock markets.