Market not a bubble overall, specific sectors see high valuations: Manish Chokhani, Enam Group

economictimes.indiatimes.com:

Manish Chokhani of Enam Group says he doesn’t think he can call the entire market a bubble. “Like I said, if the top 40 companies are not trading at excessively crazy valuations, it is certainly there in pockets like we discovered defence, railways, PSUs, in capital goods, lot of multinationals to an extent where every multinational owner of the business across the world has come and sold in India. In the last six months alone $15 billion has gone back to promoters and private equity investors.”

Nikunj Dalmia: I will start with something which is very basic, something which over the years which you alluded to, the market cycle, does not matter where we are, it is important for us to identify the market cycle. It starts after a crash, then it moves into recovery, boom, there is disbelief, and then there is crash. Where is this bull market if you have to talk about in terms of the market cycle?

Manish Chokhani: So, if you are showing the graphic, which is the source of it, of course, is the great Marc Faber, who used to show how this market goes through five or six phases. And we are, of course, in the phase where there is profit expansion going on and we have not yet created the story that this time is different and India will grow to the moon. Like you remember the 2000 to 2008 bull market, when BRICS had become the predominant theory and commodities and China had actually led that bull market. And if you remember the peak which then China made, it did not then recover from that for the next 14 years. And it is