valuation: Even at these high levels, the Sensex valuation is below 50,000

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However, compared to global indices, the Sensex is the second most expensive after the US Nasdaq.

Synopsis

Analysts said the cheaper valuations were due to stronger-than-expected earnings growth in the March and June quarters. In January-March, Sensex companies posted their highest ever net profits thanks to rising commodity prices and strong consumer demand.

Mumbai: The near one-sided rally in Indian stocks over the past 18 months has heightened concerns about wealthy valuations. But a silver lining for the market is that the valuation of Sensex, the benchmark comprising India’s 30 most valuable companies, at 60,000 is cheaper than it was at 50,000. ET study shows that Sensex trades at an estimated price / earnings (PE) ratio – a popular valuation metric – of 25.8 times compared to

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