As Nifty eyes new highs, India’s valuations become a sore point
SummaryIndia’s equity valuations measured using the market capitalization to GDP (gross domestic product) ratio is above its long-term average. Also known as the Warren Buffett indicator the measure stood at 95% in FY23, showed an analysis by Motilal Oswal Financial Services Ltd.
Benchmark Nifty 50 index is slowly striving to reclaim its all-time closing high of 18,813 seen in December 2022. On Thursday, the index closed just a percent away from that level. But valuations are getting steeper.