New Delhi, Oct. 18 -- Global and domestic equity markets continue to be rattled by covid-19 waves and lockdowns, but investors are taking these bouts in their stride. Last week's Nifty 50's jump beyond 12,000 for the first time in eight months brought in a marginal selling wave. This shows that at higher levels stocks are edgy as valuations are over pre-pandemic highs.

The Nifty 50' price-earnings multiple of about 34 times is well above its long-term average and much higher than pre-covid highs. Of course, while valuations could soften with the earnings season underway, the elevated multiples mean that investors should be on the watch as doors seem open for some downside.

That said, the earnings season is off to a good start. Of course...