‘Reflection of optimism’: SEBI chief bats for Indian stock market valuations citing ‘trust and faith’

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Mumbai: SEBI chief Madhabi Puri Buch gave a spirited defence of India’s stock market valuations stating that it was a sign of optimism as well as faith and trust that the world has in India. Speaking at a CII event, Puri Buch acknowledged that India was an expensive market: “Yes, some people say that we are an expensive market.” However, she qualified the statement by posing a rhetorical question: “But still why is the investment coming?”

Global interest in India’s growth story

Puri Buch said the world was optimistic about India and the incoming investment was reposing its faith and trust in India. “This is a reflection of the optimism and the trust and faith that the world has in India today that we are commanding the kind of multiples in our markets,” the SEBI chief said.

Puri Buch said that during her meetings with foreign investors that are part of her mandate as SEBI chief, the elevated interest in India is palpable owing to India’s high-speed growth. Indian market valuation has nearly quadrupled to Rs 378 lakh crore in FY24 compared to Rs 74 lakh crore 10 years ago, said Puri Buch. Indian companies garnered Rs 10.5 lakh crore via shares and bonds in FY24, equalling 62 per cent of overall bank lending in India.

Smallcap and midcap froth

This comes weeks after the SEBI chief had flagged the smallcap and midcap stock category for showing signs ofr froth. The statement resulted in a bloodbath on Dalal Street with the Sensex and Nifty tanking nearly 1 per cent leading to a major correction in small and midcap valuations.

IIM-A celebrates Madhabi Puri Buch

India’s premier management institute IIM-Ahmedabad shared a post with an image from the 1988 batch yearbook featuring Madhabi Puri Buch. The post was part of an IIM-A archive series and described Puri Buch as “a 1988 alumna who rewrote the rules.”

This month’s #IIMAArchives spotlight celebrates Ms Madhabi Puri Buch, a 1988 IIMA alumna who rewrote the rules. Choosing her own path over placement, she made history as SEBI’s first female chairperson.
Read more: https://t.co/5mIsvUD41a#IIMAMonthlySnippet #IIMAAlumni pic.twitter.com/4JHmEgk3uH

— IIM Ahmedabad (@IIMAhmedabad) March 31, 2024

The institute celebrated her journey in rising to the post of chairperson of markets regulator SEBI and becoming the first woman to achieve this feat.

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