InvestorQ : Is the Indian market overvalued at this point of time?
Dhwani Mehta made post

Is the Indian market overvalued at this point of time?

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Dilmini Mercia answered.
2 months ago
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As the Nifty scales close to 15,000 and the Nifty hovers around 50,000, it may appear like market valuations are stretched. But the data says something different. For example, 22 out of the Nifty-50 stocks are still quoting at a discount to long-term valuations averages. Here we consider P/E ratio for industrials and P/BV for all financials

Sample these; ONGC is at 50% discount to 10-year average P/E, with NTPC, Tata Steel and ITC at a discount of more than 40% to their 10-year long term averages. Despite the recent rally, stocks like Hero Moto, HDFC and Eicher are below their 10-year averages. Not surprising, but cement, consumer stocks and IT stocks are above 10-year median valuations.

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