Quote on Morning Market Views 11th November 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
Below the Quote on Morning Market Views 11th November 2025 by Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited
The AI trade which was weak last week has again bounced back with 2.2% gain in Nasdaq. While there is concern that the return from AI stocks will take much longer-than-expected presently, it is a fact that there is no bubble yet in AI stocks, particularly when compared to the Tech bubble which crashed in 2000. In March 2000 Nasdaq PE was above 70 and many tech stocks were trading above 150 PE. Now Nasdaq is trading at 32 PE and the valuations of AI stocks range from 28 to 51. Therefore, the AI trade may continue for some more time, and so long as this trade persists, FIIs, particularly hedge funds, may continue to sell in India. This will weigh on Indian markets.
Investors have to give priority to valuations and safety now. While Nvidia, the most valuable company in the world, is trading at 51 times earnings, Indian retail investors are investing in IPOs priced at 230 times earnings. These are dangerous, unhealthy trends. Time for caution.
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