Nearly 2 of 3 Nifty50 stocks at premium to historical valuations

Nearly two-thirds of Nifty50 components are trading at a premium to their historical valuations. Last week the benchmark index made fresh highs on three occasions. The 50-share index currently trades at a price-to-earnings (P/E) multiple of over 20x on a 12-month forward basis — a premium of 8 per cent to its 10-year average of 18.8x. At least three of its components are trading at a premium of more than 70 per cent.
 
The list of stocks trading at a premium is dominated by IT, pharma, and index heavyweight Reliance Industries.
 
Meanwhile, the stocks trading at a discount