The fortnight's burning question

The fortnight's burning question.

The BSE Sensex has risen quite fast and is now ruling at 15,000-plus levels. Is the stock market overheated?

No. Sushil Muhnot, MD, IDBI Capital Market Services

I don't think the stock market is overheated at all. In fact, it looks quite fairly priced at current levels, especially in the light of the robust corporate earnings growth in the first quarter of this financial year. In the short-term, I feel the market will trade sideways.

Maybe. Ajay Relan, MD, Citi Venture Capital International

It depends on your perspective. If you look at any market that has run up dramatically (like the Indian stock market has), you will see that valuations will invariably look high. We have to invest in the market for the long-term. From that perspective, valuations do not really look that stretched.

No. Andrew Holland, MD, DSP Merrill Lynch

The Indian market looks reasonably valued when compared to other emerging markets on the basis of the price-to-earnings (P-E) multiple. The high growth in the domestic economy, coupled with robust corporate earnings, makes the Indian market all the more attractive.