Indian equities trading at fair valuations relative to global peers: Report

Mumbai: India is at the cusp of a new investment upcycle and domestic equities are currently trading at fair valuations relative to global peers, a new report showed on Wednesday. Nifty 50 is at approximately 20 time P/E (Price-to-Earnings) — below its recent historical averages. The valuation comfort is supported by robust macroeconomic fundamentals, including expected GDP growth of 7.3–7.5 per cent and steady earnings expansion, according to the report by Emkay Global Financial Services. “India is at the cusp of a new investment upcycle, driven by healthier corporate balance sheets, policy support, and a more pragmatic approach from promoters. There is a clear pivot towards sectors like manufacturing, infrastructure, and energy, where rising capex and global realignment are creating long-term opportunities,” said Yatin Singh, CEO, Investment Banking, Emkay Global Financial Services.
After a significant correction, the Nifty 50 is currently trading at approximately 20.23 times TTM (trailing twelve months) P/E — well below its 1-year median of 22.30x and 10-year median of 23.50x. This places India at a reasonable valuation relative to global peers such as NASDAQ (33.23x), Nikkei225 (22.14x), and DAX (16.49x), the report mentioned.India’s valuation premium relative to emerging markets is underpinned by strong structural fundamentals.