RBI flags risk of bubble in Indian equity markets : vimarsan

RBI flags risk of bubble in Indian equity markets


RBI flags risk of bubble in Indian equity markets
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The Reserve Bank of India (RBI) on Thursday said the sharp rally in the domestic equity markets despite an estimated 8 per cent contraction in GDP in 2020-21 poses the "risk of a bubble".
In its annual report for 2020-21, RBI noted that India's equity prices have surged to record highs, with the benchmark index Sensex crossing the 50,000 mark on January 21, 2021 to touch a peak of 52,154 on February 15.
This represents a 100.7 per cent increase from the slump just before beginning of the nationwide lockdown (since March 23, 2020) and a 68 per cent rise over the year 2020-21.

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