Central bank sees no bubble in stock markets

RBI was worried about risks faced India's software exports due to protectionist policies like H1-B

The central bank does not see a bubble in the stock market despite high valuations. 

“No bubble is detected currently when stock prices have reached historical highs. The current rally in stock prices seems to reflect the strong macro fundamentals of the Indian economy, easy liquidity conditions prevailing in the system and buoyancy in global markets. Nonetheless, a constant vigil of stock prices may be warranted at this juncture, keeping in view the ramifications for financial and price stability,” said the Reserve Bank of India (RBI) in its annual report for FY17.

According to the RBI, a sensitivity analysis of