top of page

By:

Akhilesh Sinha

25 June 2025 at 2:53:54 pm

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014...

India's multi-align diplomacy triumphs

New Delhi: West Asia has transformed into a battlefield rained by fireballs. Seas or land, everywhere echoes the roar of cataclysmic explosions, flickering flames, and swirling smoke clouds. et amid such adversity, Indian ships boldly waving the Tricolour navigate the strait undeterred, entering the Arabian Sea. More remarkably, Iran has sealed its airspace to global flights but opened it for the safe evacuation of Indians.   This scene evokes Prime Minister Narendra Modi's memorable 2014 interview. He stated that "there was a time when we counted waves from the shore; now the time has come to take the helm and plunge into the ocean ourselves."   In a world racing toward conflict, Modi has proven India's foreign policy ranks among the world's finest. Guided by 'Nation First' and prioritising Indian safety and interests, it steadfastly embodies  'Vasudhaiva Kutumbakam' , the world as one family.   Policy Shines Modi's foreign policy shines with such clarity and patience that even as war flames engulf West Asian nations, Indians studying and working there return home safe. In just 13 days, nearly 100,000 were evacuated from Gulf war zones, mostly by air, some via Armenia by road. PM Modi talked with Iran's President Masoud Pezeshkian to secure Iran's airspace for the safe evacuation of Indians, a privilege denied to any other nation. Additionally, clearance was granted for Indian ships carrying crude oil and LPG to pass safely through the Hormuz Strait. No other country's vessels are navigating these waters, except for those of Iran's ally, China. The same strategy worked in the Ukraine-Russia war: talks with both presidents ensured safe corridors, repatriating over 23,000 students and businessmen. Iran, Israel, or America, all know India deems terrorism or war unjustifiable at any cost. PM Modi amplified anti-terror campaigns from UN to global platforms, earning open support from many nations.   Global Powerhouse Bolstered by robust foreign policy and economic foresight, India emerges as a global powerhouse, undeterred by tariff hurdles. Modi's adept diplomacy yields notable successes. Contrast this with Nehru's era: wedded to Non-Aligned Movement, he watched NAM member China seize vast Ladakh territory in war. Today, Modi's government signals clearly, India honors friends, spares no foes. Abandoning non-alignment, it embraces multi-alignment: respecting sovereignties while prioritizing human welfare and progress. The world shifts from unipolar or bipolar to multipolar dynamics.   Modi's policy hallmark is that India seal defense deals like the S-400 and others with Russia yet sustains US friendship. America bestows Legion of Merit; Russia, its highest civilian honor, Order of St. Andrew the Apostle. India nurtures ties with Israel, Palestine, Iran via bilateral talks. Saudi Arabia stands shoulder-to-shoulder across fronts; UAE trade exceeds $80 billion. UN's top environment award, UNEP Champions of the Earth, graces India, unlike past when foreign nations campaigned against us on ecological pretexts.   This policy's triumph roots in economic empowerment. India now ranks the world's fourth-largest economy, poised for third in 1-2 years. The 2000s dubbed it 'fragile'; then-PM economist Dr. Manmohan Singh led. Yet  'Modinomics'  prevailed. As COVID crippled supply chains, recession loomed, inflation soared and growth plunged in developed countries,  Modinomics  made India the 'bright star.' Inflation stayed controlled, growth above 6.2 per cent. IMF Chief Economist Pierre-Olivier Gourinchas praised it, advising the world to learn from India.

Why buying high P/E ratio stocks is risky?

Updated: Oct 22, 2024

stocks

The Indian stock markets have generated significant wealth for investors over the past 3-4 years. The Nifty50 index has seen a return of 48.5 per cent over this period. Similarly, the Nifty smallcap 100 and Nifty midcap 150 indices have shown impressive returns of 76.6 per cent and 96.8 per cent respectively during the same timeframe. However, some individual stocks have underperformed the broader markets. The primary reason for this underperformance is often attributed to their high valuation.

To begin with, let's look at the Price to Earnings (P/E) ratio, which is a key valuation metric. This ratio provides insight into how much investors are paying for each dollar of a company's earnings, with higher ratios indicating a more expensive stock. Generally, stocks with a P/E ratio below 15 are considered value stocks, those between 15 and 25 are seen as fairly valued, and those above 25 are deemed expensive. Now, let's examine the stocks in the Nifty 500 index that have significantly fallen short of the index's performance over the last 3 years.

Out of around 500 stocks in Nifty500 index, about 25 have either seen no return or have returned very little. Prominent examples include Bata, Asian Paints, Metropolis, Star Health, Mphasis, SBI Cards, and Jubilant Foodworks, all of which had a P/E ratio above 25 in September 2021. This data suggests that investing in high P/E stocks can be a risky move, as these stocks often lag behind the overall market.

While the P/E ratio shouldn't be the sole consideration for investment, it's undeniably a crucial one. Investors should also look at other financial ratios such as Return on Equity (ROE), Return on Capital Employed (RoCE), and Debt to Equity (D/E) ratio in conjunction with the P/E ratio. Stocks that show consistent profit growth, a healthy ROE, low debt, and a reasonable P/E ratio are more likely to generate above-average returns in the stock market.

Comments

bottom of page