Economics
'Frothy' Assets Spark Concerns as Cash Floods Indian Markets
- Authorities have flagged impact of large flows on markets
- Weak profit outlook doesn’t justify valuations: analysts
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From officials of India’s central bank and the market regulator to fund managers, people are fretting over elevated asset prices.
The nation’s equities and bonds have rallied even as economic growth sags to its weakest since 2014, and earnings remain stubbornly weak. The reason: a surge in local flows after last year’s cash ban and buoyant global markets.