rates are headed up, little investment is taking place and high inflation is eating into household spends. But, with cash to deploy, investors are brushing aside weak order-books and falling realisations for cement producers and smaller volumes for FMCG firms. After the run up to 21,205, the Sensex is now trading at just under 16 times estimated one-year forward earnings, a multiple that’s higher than the long-term average; it would have been more expensive but for the fact that earnings have been upgraded thanks to the sharp rupee depreciation. Within its peer group, India is more expensive than Korea, but a little cheaper than Taiwan. While the Sensex’s move from 15,000 to 21,000 was driven by a handful of stocks from the IT, private sector banks, auto, energy and pharma sectors, many of these have now become very expensive. Which is why cheaper stocks like those of PSU banks, where asset quality looks like it isn’t going to worsen, might now get a look in from funds. Till they run out of money.