The valuation premium was above 40% for only 1.4% of the total trading days since January 2005. The Nifty50 is now the second most expensive index among major global indices after NASDAQ. Over three out of every four constituents of the Nifty 50 trade at a premium to their respective long-term average valuations propelled by sectors such as consumer, IT and Industrial sector, a sector which typically trades at a reasonable valuation.
The Nifty50 continues to trade at 19.8 times its 1-year forward P/E based on the consensus earnings. On a 10-year basis, the index is still trading 10% above its 10-year mean valuation, says HSBC Mutual Fund
The S&P BSE Sensex’s rise by over 1,300 points on December 4 giving a thumbs up to the Bharatiya Janata Party’s victories at state elections has got many investors pondering how they should invest before or after the general elections in 2024. But there’s a far bigger story at play here.
"In the 1st Term of our Prime Minister we saw the clean-up activities, In the 2nd Term we saw reforms and we believe the 3rd Term would be an execution and results-based term where India would try to hit new and ambitious targets and Samvat 2080 would mark the beginning of the same.The Nifty50 has strong support at 18400 levels and we can see Nifty hitting 21500 levels by Samvat 2080."