Directions: Kindly study the paragraph given below and answer the question that follows. Recently, the Sensex 30 hurtled past 36,000 and the Nifty50 scaled 11000, voices of caution were drowned out by those celebrating the fastest 1000-point gain in the Sensex. Domestic market players continue to conjure up a variety of justifications for these gains — IMF’s bullish forecast, earnings revival, budget reforms, the January effect and surging domestic flows. But Indian investors still have the most to worry about a possible melt-up scenario, because with the Sensex 30 is one of the most expensive markets in the world and at the current levels, allows little margin of safety for disappointments. Inveterate bulls argue that this time it’s different because India’s stock rally in the last three years has been powered more by sticky domestic retail money, than fickle foreign flows. Which of the following weakens the claim that the stock rally would be a sustained one this time? I. Market intermediaries and funds have everything to gain from ballooning assets. II. The Sensex 30’s price-earnings ratio is at 25.2 times and is at a very steep valuation already. III. Most of the domestic money flooding into equities now is not from patient or informed investors.

Directions: Kindly study the paragraph given below and answer the ques

1.	Directions: Kindly study the paragraph given below and answer the question that follows. Recently, the Sensex 30 hurtled past 36,000 and the Nifty50 scaled 11000, voices of caution were drowned out by those celebrating the fastest 1000-point gain in the Sensex. Domestic market players continue to conjure up a variety of justifications for these gains — IMF’s bullish forecast, earnings revival, budget reforms, the January effect and surging domestic flows. But Indian investors still have the most to worry about a possible melt-up scenario, because with the Sensex 30 is one of the most expensive markets in the world and at the current levels, allows little margin of safety for disappointments. Inveterate bulls argue that this time it’s different because India’s stock rally in the last three years has been powered more by sticky domestic retail money, than fickle foreign flows. Which of the following weakens the claim that the stock rally would be a sustained one this time? I. Market intermediaries and funds have everything to gain from ballooning assets. II. The Sensex 30’s price-earnings ratio is at 25.2 times and is at a very steep valuation already. III. Most of the domestic money flooding into equities now is not from patient or informed investors.
A.	Only III
B.	Only I and II
C.	Only II and III
D.	Only I and III
E.	All of the above
Answer» B. Only I and II

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