Nifty P/E slips below five-year average on sustained selling
Due to the current weakness in the market, nearly 50% of the Nifty stocks now trade below their ten-year average P/E multiple. These include stocks such as ONGC, Coal India, Tata Steel, NTPC and SBI.
Synopsis
For the first time in two years, equities in Asia’s third largest economy have entered the technical correction phase marked by more than 10% fall in the benchmark from the recent peak.
Amid sustained selling pressure, the valuation of the Nifty 50 has slipped below the five-year average of 18.82 times the one-year forward earnings for the first time in 14 months. For the first time in two years, equities in Asia’s third largest economy have entered the technical correction phase marked by more than 10% fall in the benchmark from the recent peak. However, the selling pressure is partially offset by the buying support from
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