A $590 billion inventory rally in India since late March is prone to faltering as earnings face headwinds and retail buyers pull again amid stretched valuations.

The MSCI India Index’s 12-month forward-earnings a number of has risen to close 21 occasions from 18.5 occasions simply over three months in the past, in response to information compiled by Bloomberg. That’s above its 10-year common and greater than 50% greater than the valuation for the broader Asian gauge.