In the last few months valuations have been moderating downwards but yet significant mean reversion of valuations hasn’t happened.
Nifty Media is however at a significant discount to its long term average. Other sectoral indices are more or less in vicinity of long term averages with exception being in mid caps, small caps, reality.
| INDEX VALUATIONS AS ON 1st JANUARY 2025 | ||||
| INDEX | LEVELS | PARAMETER | LONG AVG | CURRENT |
| NIFTY 50 | 23742 | PE | 20.9 | 21.88 |
| NIFTY 500 | 22481 | PE | 25.14 | 25.47 |
| NIFTY MID CAP 100 | 57450 | PE | 26.54 | 43.09 |
| NIFTY SMALL CAP 250 | 17908 | PBV | 2.31 | 4.14 |
| NIFTY BANK | 51060 | PBV | 2.62 | 2.25 |
| NIFTY IT | 43373 | PE | 23.2 | 34.06 |
| NIFTY PHARMA | 23459 | PE | 39.44 | 37.11 |
| NIFTY COMMODITIES | 8119 | PBV | 2.16 | 2.12 |
| NIFTY FMCG | 57017 | PE | 38.72 | 46.54 |
| NIFTY ENERGY | 35430 | PE | 13.28 | 16.18 |
| NIFTY PSE | 9561 | PBV | 1.82 | 2.07 |
| NIFTY AUTO | 23139 | PBV | 5.05 | 4.75 |
| NIFTY FINANCIAL SERVICES | 23619 | PBV | 3.3 | 2.85 |
| NIFTY MEDIA | 1832 | PBV | 4.01 | 1.42 |
| NIFTY REALITY | 1040 | PBV | 2.13 | 5.95 |