Stock Markets, P/E and experts!!

Sensex is trading at a P/E of 24.13 times. Some experts say that global liquidity is the reason and we are under priced when compared to China ( P/E multiple of around 40).
Sensex has moved on from very low P/E in 2004 of 15,16....and so on. We have been hearing this low P/E concept at every phase. (Now its relative low price earning muliple concept?)
Stock market zoom is faster than actual growth. May be, we were genuinely under priced all these days!!. We can see whether this is a sustainable price to earnings multiple only when a global crisis looms large and FIIs start shedding the stocks. Direct retail investors have to get much more careful, if they are not investing for the long run.
( BSE -P/E multiple during Harshad Mehta was more than 40, Current BSE Realty Index -P/E Multiple 63.81 times, Current BSE Capital Goods -P/E Multiple 42.22 times)
Is there a big bubble in realty and capital goods?. Are we poised for a BIG growth?. I am atleast not sure about the hype around realty index.!!

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