Which sectors of the market still offer value for investors? Abhay Agarwal answers
«They are still at about 20 times FY26 earnings at the index level. So, I would not call it that this valuation is so far stretched that there are no opportunities. At the same time, are the valuations at a level that you can say with a lot of certainty that anything you buy will make you money? I do not think we are there also,» says Abhay Agarwal, Piper Serica.
Given the fact that we are hitting fresh record high now on the markets once again, do you believe that the market valuations is now looking a bit stretched or do you think that it is not that expensive yet?
Abhay Agarwal: If we look at by traditional standards, the valuations are definitely on the higher side. I do not think the valuations or the index, when we look at valuation, we typically talk about the valuation of the Nifty Index stocks, the 50 stocks. So, they are not in the exorbitant range yet.
They are still at about 20 times FY26 earnings at the index level. So, I would not call it that this valuation is so far stretched that there are no opportunities. At the same time, are the valuations at a level that you can say with a lot of certainty that anything you buy will make you money? I do not think we are there also.
I think we are somewhere between fair value and expensive zone. So, investors will have to do a lot more work right now to make money in the sense that they cannot just look at index stocks or they can only look at index funds, but they have to become a little more active and look for opportunities that are not part of the index
