D-Street Talk podcast | Market cap at record highs but Warren Buffett indicator is still not at euphoric levels: Nitin Singh

The S&P BSE Sensex, and Nifty might not have hit record highs but the average market capitalisation of the BSE-led companies have already touched fresh highs of around Rs 161 lakh cr, but there is room for more upside.

Mcap has touched new highs, and if we look at Warren Buffett famous indicator Mcap-to-GDP, it is trading at 82% which is greater than the 10-Year average of 76% but thankfully it is not euphoric, Nitin Singh Managing Director & CEO, Avendus Wealth Management said in D-Street Talk podcast with Moneycontrol.

“The V-shaped recovery in the market has taken it back to pre-covid levels. It is a very good outcome compared to what we thought in March-April. Lower interest rates, weak dollar, liquidity by central banks & Govt., hopes of a vaccine, reforms push, and the market is usually forward-looking and the PMI indicator has shown,” explains Singh.

On the other hand, Singh highlighted that market is running ahead of fundamentals, and earnings visibility is low of FY22-23. The government also does not have much of a fiscal room to stimulate demand, and we still don’t know if there is a second or third wave coming.

The market at current levels is priced fairly. But, yes, there are pockets of opportunity which retail investors can look at.

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