The National Stock Exchange’s (NSE’s) Nifty 50 index has been running at a price-to-earnings (PE) ratio of 26 for months. This is about 35 per cent above its long-term median levels.
The NSE 500 — the 500 largest stocks listed on the exchange — is running at a PE of 31-plus. The primary market has also seen richly priced initial public offerings (IPOs) getting over-subscribed quite comfortably. Going by any conventional system, or by India’s market history, these valuations are wildly over-optimistic. Record levels have been hit despite six ...
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First Published: Sun, December 03 2017. 22:38 IST
