Broader market remains richly valued despite correction in stock prices

The broader equity market remains richly valued despite recent correction in stock prices, ruling out a pause in selling by foreign portfolio investors (FPIs). A broader basket of 864 stocks — either part of the BSE 500, BSE MidCap, or BSE SmallCap indices — are currently trading at 29.5x their trailing 12-month earnings, against the 10-year average earnings multiple of 19.5x. The valuations are down marginally from all-time high earnings multiple of 31.2x at the end of March this year. In comparison, these stocks were trading at 15.6x their trailing 12-month earnings a.....

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