Emerging macro scenario may bring headwinds: Tyagi
The Hindu
SEBI chief urges investor caution amid high P/Es
Head winds could likely come from the emerging macroeconomic scenario, which, in turn, would depend upon the extent of control over the spread of the COVID-19 virus, SEBI chairman Ajay Tyagi said on Thursday.
Stressing that the prevalent high price-to-earnings (P/E) ratios had bet on earnings to improve in the future, he said a crucial factor would be how excess liquidity in the system would be managed by central banks globally, including the timing and pace of unwinding.
“The level of inflation is another factor to watch. Given the uncertainty, it is difficult to predict the inflection point,” he said while addressing a CII summit on Financial Markets.
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