CEO Survey: Is the Indian Market Overpriced?

According to a pre-budget survey targeting chief executives (CEOs) conducted by Moneycontrol in collaboration with Deloitte, the majority of top managers who think the Indian market is moderately expensive.

According to the survey, 55% of CEOs view current valuations as moderately expensive, 22% overpriced, 21% undervalued, and 3% underpriced.

The Indian stock market is booming, and SENSEX and NIFTY, which are benchmark indices, are constantly hitting record highs. Due to liquidity push from both foreign investors and domestic investors, SENSEX broke through the 80,000 mark, and NIFTY also surpassed 24,500.

Furthermore, Nifty is currently trading at 24.80 times PER, which is 23.5 times higher than the 10-year median value. Analysts predict that PER for the fiscal year ending 25/3 will be around 18.97 times, which suggests that although it is currently slightly expensive, it is cheap in the long run.

Interestingly, the majority of market participants are of the view that the valuation of the Indian stock market is healthy, and even if it is at a slightly high level, it reflects the strong growth potential of the economy and a strong earnings outlook.