The recent upswing in the sentiments has resulted into a rapid rise in the share market index . this is a welcome state to be in, for a longer time . But the trend is more or less continuous since nearly four months or more .
the analysts will agree that the PE ratios are rising beyond or near dizzy limits. Even at this stage the good sentiments are showing a growing trend ( thanks to good monsoon, some solution to coal block blockages and the initiatives of the new NDA Government ) . The investors will soon realise the high PE implications and will be a bit worried about the future. In order to keep their appetite duly satisfied, new issues of convertible debentures, equity shares or large Private equity deals will be sought after.