In an interview to CNBC-TV18, Ratna Sahay, Deputy Director-Capital Markets, IMF spoke at length about the market from the sidelines of the Emkay Confluence, which is underway in Mumbai.
Stock prices in the US or even in India are at record levels but it is important to look and compare with valuations and see if they are too high, said Sahay.
She further said that price-earnings ratios are at top-end if compared to the historic levels.
Speaking about Fed, she said central banks understand the importance of clear communication post taper tantrum.
According to her, global environment is favourable for India.
Goods and services tax (GST) augurs well for the Indian economy, she added.
However, very high corporate leverage and non-performing assets (NPAs) remain major concerns, said Sahay.
India must look at developing corporate bond market, she further added.
Watch accompanying video for more details.
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