Nifty@20k: Valuations surpass most developed markets. Will the rally continue?
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Valuation Check
The Indian equity indices scaled new highs on September 12. The Nifty50 crossed the 20,000 summit during Monday’s trade and closed at a record high. Amid sticky global inflation and higher interest rates, India (Nifty) currently trades at a valuation of nearly 21 times one-year forward PE, which is the highest among all the emerging markets and even higher than most of the developed markets. Here’s a global tally of the developed markets, take a look:
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US (Dow)
1-year forward PE: 19.7
5-year average PE: 19.5
1-month index return: -2%
YTD return: 4.3%
5-year average PE: 19.5
1-month index return: -2%
YTD return: 4.3%
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Japan (Nikkei)
1-year forward PE: 19.7 5-year average PE: 19.51-month index return: 0%YTD return: 24.4%
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Hong Kong (HSI)
1-year forward PE: 9.1 5-year average PE: 11.5
1-month index return: -5.1%
YTD return: -8.5%
1-month index return: -5.1%
YTD return: -8.5%
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UK (FTSE)
1-year forward PE: 10.7
5-year average PE: 13.6
1-month index return: -0.6%
YTD return: 0.4%
5-year average PE: 13.6
1-month index return: -0.6%
YTD return: 0.4%
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France (CAC)
1-year forward PE: 12.6
5-year average PE: 15.7
1-month index return: -1%
YTD return: 12.3%
5-year average PE: 15.7
1-month index return: -1%
YTD return: 12.3%
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Singapore (STI)
1-year forward PE: 10.4
5-year average PE: 13.9
1-month index return: -2.3%
YTD return: -1%
5-year average PE: 13.9
1-month index return: -2.3%
YTD return: -1%