Investors should not go just by index valuations
Rajeev Thakkar, chief investment officer of PPFAS Mutual Fund, took a more careful approach but added that valuations should be seen in the light of substantially lower interest rates
Fund managers speaking at the Mint Money Conversations, presented by digibank by DBS, on 14 October, urged investors not to be driven by index valuations. A collapse in economic growth has caused indicators such as price-to-earnings (P-E) and price-to-book (PB) to rise to historic highs. The trailing P-E ratio of the Nifty 50 is at 34.87, according to data from the National Stock Exchange. However, India’s benchmark Nifty index has reached the 11,680 mark this week, inching close to its all-time high of 12,377.