Nifty price-to-book valuation hits pre-Covid level. Why the index is still not cheap
- Posted on August 11, 2026
- By Business News Today
- 2 Views
- 1 min read
In brief
India's Nifty index reaches pre-pandemic price-to-book valuation levels, signaling a market correction after years of premium pricing. However, analysts warn that attractive valuations may be misleading given persistent high earnings multiples. With limited room for multiple expansion, investors must focus on fundamental profit growth and careful sector selection. India's robust economic fundamentals and strong corporate performance create opportunities for astute stock picking in the current market environment.
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Nifty price-to-book valuation hits pre-Covid level. Why the index is still not cheap
Nifty's price-to-book ratio has dipped below three for the first time in years, highlighting a significant shift. Despite this, earnings remain at high valuations, suggesting minimal potential for multiple expansions. Future advancement in the market will depend more on profit enhancements instead of valuation adjustments. India's economic outlook looks promising, with several firms outperforming expectations, necessitating careful stock and sector choices to achieve alpha.
