Hold your horses: Equities are expensive but reasons are not enough to exit

There are indications that a double-digit earnings recovery for the corporate sector is not far

The stock market rally since the beginning of 2016 has been extraordinary. At a time when the economy was reeling from extreme stress after the note ban, the stock market started rallying, with foreign investors buying stocks of over Rs 300 billion in March last year, the highest they have bought ever in a single month. The goods and services tax (GST) regime, which started in July, disrupted the economy further, but the stock markets were in a zone of their own as money kept coming. Retail investors, who began investing aggressively in mutual funds since 2014, kept oiling the