India valuations hit 6-year low, but stocks still expensive than EM peers
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India’s equity valuations hit a six-year low following a recent market decline.
- ✓Despite this, stocks remain more expensive than emerging market peers.
- ✓Vivek Iyer said, "The Nifty forward PE looks cheap only if you believe the forward EPS." Many investors still feel the broader market reset is not complete yet.
Story at a Glance
- Category
- MARKET
- Reported By
- The Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
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Mumbai: India's equity valuations are at their lowest levels in six years following the recent market decline sparked by a slew of factors, including foreign selling, a weaker rupee, higher crude prices and rising US bond yields. But that may not be reason enough for overseas investors to reverse their pessimistic view, as stocks here, despite coming off their highs, remain more expensive than their emerging market (EM) peers.
The dollar-denominated MSCI India Index trades at around 18.5 times its 12-month forward price-to-earnings (P/E) ratio, the lowest level since May 2020. It hit a record high of 24.54 times in September 2024, when the Sensex and Nifty reached their all-time highs.
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The Economic Times
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