Understanding the Indian stock market returns during 2013-2016

The returns on a particular stock are driven primarily by three factors
1. Growth in earnings
2. Expansion of multiple
3. Dividend
As illustrated by the following data, the majority of the returns during 2013-16 is driven by multiple-expansion which is a proxy of consumer sentiments. Now the question is whether the bull run in the stock market is sustainable, given the weak growth in corporate earnings growth?
Mid Caps - Market performance B&W.jpg

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