Mutual funds and PMS fund managers face pressure to deploy funds, despite expensive valuations. They may lean towards largecaps to mitigate volatility, although this trend could further inflate valuations in that segment, analysts said
Despite a 18 per cent surge in 2023, Nifty is trading at a 12-month forward PE ratio of 19 times, which is at a discount to its 10-year average of 20 times.