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homemarket NewsEditors’ Roundtable | Earnings growth a major factor in driving Indian market forward

Editors’ Roundtable | Earnings growth a major factor in driving Indian market forward

In October 2021, the Nifty was at 18,600. And now, one-and-a-half years later, it is at 18,800. In between, it had one-and-a-half years of around 20 percent earnings growth.

By Anuj Singhal Jun 17, 2023 6:46:41 PM IST (Published)

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The Sensex and Nifty hit closing highs on June 16 and all-time highs were within sniffing distance. For all practical purposes for a lot of people, closing levels matter a lot. The midcap index hit a new high every day of the week. And earnings growth is a major factor that drives this move.

The FY23 earnings per share (EPS) have gone up around 10 percent from FY22. And the index trades at 19.5 times. In fact, Sunil Singhania, the founder of Abakkus Asset Management, said the euphoria starts at 23-24-25 times and goes up to even 50 times.

Also Read: Editors' Roundtable | Could holding companies be an alternate way to play some good quality companies?

In October 2021, the Nifty was at 18,600. And now, one-and-a-half years later, it is at 18,800. In between, it had one-and-a-half years of about 20 percent earnings growth. So, the market itself is not very expensive. Also, there is a lot of money chasing stocks, there is a lot of appetite.

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