Business Standard

Nifty P/E up 20%; discretionary, energy stocks see maximum expansion

Utilities and public sector banks are the two only pockets to see contraction in P/E

cash, currency, notes, funds, investment, shares, growth, profit, loss, tax, money, income, earnings
Premium

India’s P/E premium to the world is at 15 per cent, while that to its emerging market peers is at 54 times

Samie Modak Mumbai
The benchmark Nifty is currently up 13 per cent on a year-to-date basis. However, the 12-month forward price-to-earnings (P/E) multiples for the index has shot up nearly 20 per cent during the same period. In other words, the rise in the stocks has been much higher than the 2021 earnings growth estimates for the underlying stocks. Within the market, the discretionary, energy, and information technology (IT) sectors have seen the maximum expansion in their P/E multiples, shows an analysis done by Credit Suisse. On the other hand, utilities and public sector banks are the two only pockets to see contraction

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 20 2020 | 8:02 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com