India’s stock market opened at a fresh record high on Monday, but the stock market is not the only benchmark to watch.
The markets in China, Japan and the US are also booming.
But the main reason for the market’s extraordinary rally is that stocks are not cheap.
According to the Financial Times, stocks traded on the Bombay Stock Exchange at an average of Rs 3,100 per share on Monday.
That is the lowest level since April 2014.
But despite the price of the stocks, they are not easy to buy.
The cheapest stock in India is the Nifty, which has gone up more than 7% since March.
And the cheapest stock to buy is the Sensex, which is up more 5% over the past month.
The S&P 500 index, which measures the broadest gauge of global stock market sentiment, is up almost 40% this year.
But investors are getting nervous.
The benchmark index has gained over 1,000 points over the last week.
The Sensex has also fallen, losing more than 300 points in the last 24 hours.
And stocks are on the edge of their first major drop in two months.
The stock market has seen the sharpest sell-off in the past five years.
This is mainly because of the impact of demonetisation on the financial sector, which the government is trying to clean up.
But as of Monday, the stock markets have remained resilient, despite the financial crisis.
The benchmark S&p 500 index rose more than 9% this week to its highest level in more than a year, while the Sensext climbed 4% to hit its highest in more in four months.