Indian stocks may be getting too pricey

MUMBAI. Premium valuations along with expectations of year-end liquidity tapering measures as well as external shocks are the biggest hurdles to the ongoing stock market rally.

The 135 per cent rise seen in the 30-scrip S&P BSE Sensex from the lows of 2020 lockdown to its latest peak of more than 60,300 points might tempt some eager investors to cash out. The near vertical climb for the last 18-months as pointed out by analysts might end up in a 5-10 per cent correction in the near term.

Historically, previous bull market rallies India be it in 1992, 1994, 1998-2000, 2003-07 were dented with a corrections of 5 per cent, 10 per cent, even 20 per cent.

On the other hand, any dips will usher-in buying opportunities but these will be pursued with less vigour due to high valuations, experts said.