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    India’s premium valuation may come under pressure amid fractured election mandate

    Synopsis

    Nearly half of the Nifty 50 constituents currently trade at a premium to their historical averages. Among major global indices, the S&P 500 trades at a forward price-earnings (P/E) of 20.6, 29% higher than the long-term average

    ET Intelligence Group: India’s market valuation and relative premium to the emerging markets may reduce in the near term amid the possibility of higher allocation to social welfare schemes by the government.The Nifty 50 index trades at 19 times one-year forward earnings, making it one of the most expensive markets in the world. This is about 20% higher than the long-term average.Nearly half of the Nifty 50 constituents currently trade at a
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    The Economic Times