Sachin Jasuja, head of equities at Centricity WealthTech also added, “India’s ~19x PE appears durable as a fair value floor due to strong GDP projections, moderating inflation and still-positive earnings momentum. Policy support and trade tailwinds add cushion, though global slowdowns could still pressure valuations towards emerging market levels.”
Valuations enter “fair zone”
The recent correction has pushed Indian equities into what analysts increasingly describe as a “fair valuation” zone, with its premium over global peers narrowing. In some cases, Indian markets are currently trading at relative discount to its peers.
At around 19x TTM earnings, the Nifty trades broadly in line with South Korea’s Kospi (20x), while remaining below Japan’s Nikkei 225 (22.3x), the US S&P 500 (23.7x) and Taiwan’s Taiex (25.4x). It continues, however, to trade well above markets such as Hong Kong’s Hang Seng (11.9x) and the UK’s FTSE 100 (14.6%).
This marks a notable shift from the market peak. On 26 September 2024, when valuations were elevated, the Nifty traded at 24.8x—almost at par with the S&P 500 (24.6x) and higher than most global peers, including the Nikkei (23.3x) and Taiex (22.3x). It also commanded a steep premium over the Kospi (13.7x), FTSE 100 (12.5x) and Hang Seng (10.1x).
Jasuja said the Nifty’s premium over markets such as FTSE 100 is justified by India’s stronger growth outlook, favourable demographics, and structural reforms.
