The Indian markets have definitely done better than other world markets. Due to the improved Indian economy and FII buying, the market is reaching historic highs. However, the change is very volatile and it does not appear that the market at an overall level is over valued. EPS and the market price of individual companies may give an indication for the individual companies. There may be scope for further increase in the market.
However, at the macro level, due to a host of complex factors, it is difficult to estimate the valuation....