The S&P BSE Sensex hovers at a record high of 62,272.68 points, reaching another milestone in its long journey.
The question investors are asking is: Is the market overvalued and should we sell? Or should we simply re-align portfolios?
The Sensex hit its previous high of 61,765 on October 18, 2021. At that time, it commanded a price-to-earnings (PE) multiple of 29 on a trailing 12-month basis. At 62,272, it commands a PE of 23.4. The higher the PE ratio, the more expensive the markets are considered.