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Are you ready for a sixer?

So we are in 2003 as far as the corporate profitability is concerned though we are not as cheap, you know 2003 was a great time when economy was very bad as well as the valuations were even worse. This time the economy is obviously we can compare it with 2003 and from here on it can only grow faster but valuations are obviously not that cheap.

On top of it, you have a scenario where interest rates have come off and they can still come off further. I think which is different from 2003 is the fact that global liquidity is available in plenty so if $15 trillion is invest in negative interest rates globally, I think the move towards some of the larger economies which have great macros and good political stability like India, you might have liquidity which can come in and which not only impacts the markets technically in terms of high flows but also enables the companies to reduce their cost of finance quite significantly and also aids in capital building which is the need of the hour as far as the country is concerned.

So just to sum it up we are in 2003 as far as the economy is concerned and revival can be very swift but in terms of valuations we are definitely not in 2003.

So from 2003 to 2008 the market went up six times, maybe in the next five years it might not go up six times but it definitely looks like going up.-said Sunil Singhania,Reliance Mutual Fund

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