We expect Nifty earnings to grow by 39 percent and 20 percent in FY22E and FY23E, respectively. The NIFTY50 is trading at 20x FY22E earnings, which is ~13 percent premium to its historical valuation.
» Wildly overvalued : A former Wall Street chief strategist says it s time for stock bulls to sell their holdings - and warns of a particularly vicious comeuppance for small-caps Wildly overvalued : A former Wall Street chief strategist says it s time for stock bulls to sell their holdings - and warns of a particularly vicious comeuppance for small-caps
Matthew FoxJan 10, 2021, 20:23 IST
Traders and financial professionals work ahead of the closing bell on the floor of the New York Stock Exchange (NYSE)Drew Angerer/Getty Images
Investors should sell their long positions in stocks as the market is wildly overvalued, AlphaOmega Advisors Peter Cecchini said in a note on Wednesday.
Small and midcap stocks have fared better than the blue-chip stocks, broader market indices seem to be supported by the Auto & ancillary, Banking stocks, and Pharmaceutical sectors, says Garg.
Despite the continued upheaval, oil markets have had a strong first week of the year, and while equity markets in general are completely overvalued, energy markets could still see some strong upside