Business Standard

Markets are overvalued; IT, metals among most expensive sectors: Analysts

As of Jan 2024, the price-to-book valuation for the Nifty50 index, according to HDFC Securities Institutional Research, was 114 per cent of the average historical valuation, indicating expensiveness.

Illustration: Ajay Mohanty
Web Exclusive Premium

Illustration: Ajay Mohanty

Puneet Wadhwa New Delhi

Listen to This Article

Indian equity markets, be it the Nifty50, Nifty Midcap 100 and Nifty Small-Cap 100, are overvalued at the current levels and are trading much higher than their respective historical valuations, suggest analysts.

As of January 2024, the latest price-to-book valuation for the Nifty50 index, according to Varun Lohchab and Amit Kumar of HDFC Securities Institutional Research, was 114 per cent of the average historical valuation, indicating expensiveness. Previously when this ratio crossed 100 and touched 103 per cent in FY22, the index declined by 1.8 per cent in the subsequent financial year, FY23.

“The Nifty Midcap 100 is currently trading

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Feb 19 2024 | 9:18 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com