 "Stock market")
Equity valuations are once again on the rise, after they cooled down in the second half of 2021 and the first half of 2022.
The BSE Sensex trailing price-to-earnings (P/E) multiple has risen to a 17-month high of nearly 25x, from 23.7x at the end of December 2022 and 21.6x at the end of June 2022. Similarly, the index closed on Friday with a trailing price-to-book (P/B) value ratio of 3.6x, up from 3.4x at the end of December 2022; it is the highest since December 2021.
A steady rise in the valuation has been largely due to higher stock prices, and not because of faster growth in corporate earnings. The overall corporate earnings are showing signs of stagnation, against
