Bull run pushes market valuations to 10-year high; Nifty ends at 10,800

After 5 consecutive days of gains, the Nifty 50 index on Tuesday ended at 10,800, its highest close since March 6-before India imposed lockdowns and the economic went through a virtual halt

The benchmark indices may be 13 per cent below their all-time highs reached earlier this year, but their valuations have climbed to 10-year highs. The surge — the Nifty50 index is up 42 per cent from its coronavirus lows — coupled with a deterioration in earnings estimates, has seen the indices swing from ‘cheap  to ‘expensive’ territory within a matter of months. Such a dramatic shift in the market dynamics has stunned many on the Street.

After five consecutive days of gains, the Nifty on Tuesday ended at 10,800, its highest close since March 6. While the markets have ­rebounded (numerator: