Aditya Narain of Edelweiss Securities, in an interview to CNBC-TV18, said the rally in the Indian market has been exaggerated due to global rally.

According to him, corporate efficiencies have come through due to cost cuts.

“By and large I would say the dynamics of the economy are back to regular economy, corporate efficiencies have come through in terms of cost cuts and so you have seen EBITDAs look much better than revenues plus liquidity that has sustained for a period of time and that has given the extra push,” he added.

Therefore, Narain thinks that the market is full up in terms of valuation and should hang around these levels.

On demand, he said, “The shape of demand will determine which segment in which sectors will do well.”

For entire interview watch video