Nifty PE ratio has actually fallen from more than 40 in February March to 26 today, so market isn't that overvalued as it seems, earnings caught up much more than the price.
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Corporates Earnings have increased a lot.
Due to Covid SMEs lost their businesses to large (mostly listed) Corporations.
But a large part of the increase in corporate earning of Listed Companies came from just technicality regarding the change in Accounting ....
Earlier only Standalone Earnings were considered, but now Consolidated Earning is considered where earnings of the parent company and its all subsidiaries have to be clubbed together.
So just imagine what impact it has on companies like HDFC, SBI, L&T, Kotak, ICICI, Bajaj Finserve ........ etc, etc.......