Valuation correction has plunged more than half of India’s top-tier Nifty50 stocks into a discount sale, forcing a sharp recalibration of the risk-reward equation for investors. While headline indices mask the underlying damage, about 54% of Nifty stocks are now trading at cheaper 12-month forward price-to-earnings (P/E) multiples than they were in 2023, according to estimates.
The benchmark Nifty Index has slid 10% from its 52-week high as war in West Asia disrupts global supply chains and drives crude prices up, exposing corporate earnings to localized pressures. Yet, beneath this macro anxiety, a dramatic compression in stock multiples suggests the extreme market froth has been aggressively wrung out.
