Indian Equities: Pricey Dalal Street begins to shed some froth



India’s P/E contracted by around 5% from the peak of 19.9 times at the beginning of the year as stock prices remained subdued across some of the key sectors, reflecting an uncertain demand environment though the 12-month forward earnings per share (EPS) showed improvement. The P/E contraction was higher in steel, energy, pharma and IT sectors.

ET Intelligence Group: The valuation premium of Indian equities over the emerging market counterparts is gradually reverting to the historical level after staying high for the past few quarters. The price-earnings (P/E) premium of Indian equities to EM peers dropped to a nine-month low of 73% compared with a record high 107% at the beginning of November 2022, the data from Bloomberg showed. The long-term average premium is around 50%.India’s P/E

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