During 2018, there have been many events that moved the Indian markets towards life time highs followed by often getting corrected. We are at the end of year and markets have undergone a correction of 8% after reaching its life time high in August 2018. I have been thinking if at these current levels, are Indian markets over-valued or can we still expect it to reach new highs in coming year? Before writing down my thoughts on 2019, today I discuss about the current levels. I have done a very primary evaluation of valuation of markets, using P/E Ratio of market index, GDP growth, 10 year G-Sec yield and comparing their movement over a span of 13 years. (I have extended the normal period of 10 years by 2-3 years, as 2008 has been an exception and I wanted to showcase market trends before 2008). As per the below chart, the current P/E Ratio is 26.43 times, whereas the mean for 13 year period (2006- 2018) is 20.53 times. The ratio has peaked in last 2 years from 21 times i...