Could India end up in bubble territory in next 3-5 years? Nirav Sheth explains

economictimes.indiatimes.com:

Nirav Sheth, CEO-Institutional Equities, Emkay Global Financial Services, says: “We are in a very fortunate situation in terms of the earnings trajectory. My earnings have almost doubled in the last three years and I am talking about the largecap sector. The macros are solid in terms of the outlook on the current account deficit, rupee, interest rates, earnings. And when you have got all the cylinders firing, you generally do not expect valuations to come cheap. You will have to take some level of risk. So sitting where I am today in terms of what we can see, I would go out and say that India could end up in bubble territory in the next three, four, five years in the emerging market universe.

At the start of March, there was talk in the market that seasonally March turns out to be volatile because of a lot of adjustment happening in advance tax numbers, then a lot of leverage guys do reshuffling and usually it is a bit volatile. But the big factor that came out is that in net-net, people made a lot of gains this fiscal. This is the eighth year in a row that we are seeing positive returns from the market. Do you see the construct of the market being easy in the new fiscal year or should investors’ return expectations be moderated this year?
Nirav Sheth: To answer your first question, I am very constructive on the economy; maybe constructive is not the right word. I am terribly bullish on the trajectory of the economy for the next several years, as we can see today.

To the second part of your question, which is