With the fall in prices of various indices especially Mid caps and small caps the valuations have also started to drop. You may refer to earlier blogs on valuations to draw a comparison. Say for example Nifty Midcap 100 was having a valuation of PE 43 in Jan 2025 beginning which has dropped to PE of 38 in Feb.
Nifty Media is at heavy discount vis a vis its long term average.
Post the budget 2025 – FMCG has shown strength and has bounced aggressively. Yet the valuations if we observe are at 20% premium to its long term average., Now , whether this bounce becomes sustainable at these evaluations is to be seen in days/months ahead. Inflation numbers will have a bigger role to play on the sustainability of the valuations of Nifty FMCG.
| INDEX VALUATIONS AS ON 3rd Feb 2025 | ||||
| INDEX | LEVELS | PARAMETER | LONG AVG | CURRENT |
| NIFTY 50 | 23482 | PE | 20.9 | 21.33 |
| NIFTY 500 | 21581 | PE | 25.14 | 24.26 |
| NIFTY MID CAP 100 | 53486 | PE | 26.6 | 37.98 |
| NIFTY SMALL CAP 250 | 15955 | PBV | 2.32 | 3.68 |
| NIFTY BANK | 49506 | PBV | 2.62 | 2.18 |
| NIFTY IT | 42030 | PE | 23.27 | 31.85 |
| NIFTY PHARMA | 21334 | PE | 39.41 | 33.51 |
| NIFTY COMMODITIES | 7981 | PBV | 2.16 | 2.08 |
| NIFTY FMCG | 58396 | PE | 38.76 | 47.38 |
| NIFTY ENERGY | 33172 | PE | 13.28 | 15.14 |
| NIFTY PSE | 8995 | PBV | 1.83 | 1.95 |
| NIFTY AUTO | 23305 | PBV | 5.05 | 4.79 |
| NIFTY FINANCIAL SERVICES | 23170 | PBV | 3.3 | 2.8 |
| NIFTY MEDIA | 1615 | PBV | 3.99 | 1.26 |
| NIFTY REALITY | 952 | PBV | 2.15 | 5.44 |