Motilal Oswal, a domestic brokerage firm, has stated that the valuations of Indian stock markets are now more reasonable compared to their highs in October 2021. The Nifty trades at a 12-month forward P/E of 18.8x, at a 6% discount to its long-period average. Nifty EPS grew by about 19% during FY20-23. Despite the Nifty reaching new highs, it has remained almost flat over a two-year period. The bull run has been fueled by strong FII flows, solid corporate earnings growth, and expectations of high-teens earnings CAGR over FY23-25. The upcoming June quarter earnings season will be closely watched.