Market LIVE: Indices see sharp spike, Nifty reclaims 11,650, Sensex at day’s excessive; HDFC shares zoom over eight%


Half of Nifty 50 shares at discount to historical average, even as Nifty trades at premium valuation

Half of the 50 stocks in the NSE Nifty 50 index are trading at a discount to their respective historical averages, even as the benchmark index itself is at a premium valuation at present, brokerage and research firm Motilal Oswal said in a report. When compared to their 10 year average PE, Axis Bank and IndusInd Bank are down 63%, while Coal India is at a discount of 62%, and ONGC is down 61%, among some of the notable names. While 50% of the Nifty companies are at a discount, the index itself is above its long-term historic average. “The Nifty trades at 12-month forward P/E of 19.8x, 5% premium to its long-period average. The Nifty’s P/B of 2.5x is near its historical average,” the report said.

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Steven Gregory