Most sectors in Indian stock market trading at premium to historical averages

4/6/2021

For any News Coverage, Please Contact: media@jhalak.com

As the Indian stock market went on an unprecedented bull run amid the pandemic, around two-third of the sectors are currently trading at a premium to their historical averages, showed a report by Motilal Oswal Financial Services.

After the sharp rebound, the Nifty now trades at a 12-month forward P/E (price-to-earning ratio) of 20.7x, 10 per cent above its historical average of 18.8x, said the Bear & Bulls report.

Health care and auto now trade in a reasonable range to their long period average (LPA) valuations, while technology, after the sharp run, trades at a 40 per cent premium to its LPA. Consumer goods still trade at a decent premium to its LPA, but this premium has shrunk in the last one-year.

"Private Financials are trading at a premium to its LPA on a P/B basis. Oil and Gas is trading at 14.1x, at a 17 per cent premium owning to RIL. Excluding RIL, Oil and Gas P/E will be at 8.3x, a discount of 20 per cent to its LPA," it said.

Further, the market capitalisation-to-GDP ratio is at a new year-end high of 106 per cent.

Noting that all sectors delivered positive returns in FY21, the Motilal Oswal report said that the top gainers in the sectoral space were metals (up 151 per cent), autos (108 per cent), technology (103 per cent), capitalgGoods (+92 per cent), and real estate (90 per ecnt), while consumer goods underperformed.

The theme of FY21 was high beta, cyclicals, and value. Quality and defensive themes, the flavor of the past few years, took a breather. The breadth was positive in FY21, with 49 Nifty stocks closing higher, it said.

Source: IANS

For any News Coverage,Please Contact: media@jhalak.com

Related Links

Jhalak.com - Indian Classifieds in USA.

  • Jhalak.com is an Enterprise Multi Utility Classifieds Portal Which is Integrated and Centralized Online Classifieds, Sports Software’s and Indian Movie tickets.
  • Jhalak.com is an Indian Classifieds in USA that Covers Indian Business Directory, Roommates, Nanny Services, Buy and Sell, Indian Attorneys, CPA and Financial Tax Services, Indian Doctors, Indian Events, Indian Stores, Shops, H1 B Jobs, Training Centers, Indian Restaurants, Indian Communities, Coupons, Indian Real Estate agents and Many more desi classifieds categories.
  • Our Entertainment zone is a set of Indian Movies Information include Tollywood, Bollywood, Kollywood, Sandalwood, Hollywood and Provides Online Movies Tickets for Indian Movies in USA.
  • Online Sports Software: Cricket, Volley-Ball, Tennis, Badminton, Carrom and Ping Pong and Chess.