Is the Indian stock market overvalued?

Is the Indian stock market overvalued?

Is the Indian stock market overvalued?

Hello Traders,

No, it’s not overvalued.

The estimated P/E Ratio for the India Stock Market is 26.83, calculated on 20 August 2024.

Considering the last 5 years, the average P/E interval is [20.42, 23.38]. For this reason, the current P/E can be considered

It has been underperforming for some time due to global news of The affection and war.

Over the last 10 years, India's GDP has grown by 7 percent CAGR in USD terms to USD 3.6 trillion, jumping from the eighth largest to the fifth largest economy.

achieving 8 percent GDP growth each year in the next decade and growing India's GDP to $19 trillion by 2047. creating 90 million jobs by 2030 and 600 million jobs by 2047. investing about $600 billion annually to transition to a net-zero world by 2050. raising income sixfold to over $12,000 per capita.

The OECD focuses on projecting the potential or trend output growth based on a long-term model in which the key determinants of growth include the growth of capital stock and its productivity, the growth of the labor force and its productivity, and the pace of technological progress

gives the estimated growth rates for a selected group of countries in the OECD baseline scenario. In the case of the world, China, India, and the US, average growth rates progressively fall, decade after decade, although the rate of this decline slows after the 2030s. The main reason for the falling growth rates is the declining marginal productivity of capital and reduced contribution of technological progress.

Foreign Institutional Investors (FII) inflows between April-July (2023-24) were close to Rs. 80,500 crore (US$ 9.67 billion), while Domestic Institutional Investors (DII) sold Rs. 4,500 crore (US$ 540.56 million) in the same period. As per depository data, Foreign Portfolio Investors (FPIs) invested (US$ 13.89 billion) in India during January- (up to 15th July) 2024.

Before investing, it’s a good idea to conduct thorough research, consider your investment goals, and possibly consult with a financial advisor familiar with the Indian market.

Thank You:)

Thinking Boxx Team