Bajaj Housing Finance (BHF) had launched an IPO of Rs 6,650 crore. The company received bids for shares worth Rs 3.2 lakh crore. The Qualified Institutional Buyers (QIB) quota was subscribed 209 times. On September 16, the company's shares were listed on BSE and NSE at Rs 150 against the issue price of Rs 70 per share. At the end of trading, the shares closed at Rs 165. Investors showed tremendous interest in this IPO. However, even before this, tremendous interest of investors has been seen in IPOs. Investors are also showing a lot of interest in SME IPOs. Due to this, there are chances of a bubble forming in some stocks.

The main reason for the increase in valuation is high liquidity

The question is, should investors be cautious in view of this bubble in the market? It is difficult to answer this year in a no or yes. Let's try to understand some data. In the last 10 years, the compounded annual growth rate (CAGR) of earnings of Nifty companies has been 9.5 percent. In comparison, the average return of Nifty has been 12.8 percent. This means that the return of Nifty has been higher than the growth of earnings of Nifty companies. The reason for this is increasing liquidity. This trend is expected to continue in India. The reason for this is that the money of family savings is now going into shares.