65% of Nifty 500 stocks are overvalued, says new report
A fresh report from Omniscience Capital says nearly two-thirds of companies in India's Nifty 500 index are overvalued right now.
The main clue? The index's price-to-earnings (P/E) ratio is a hefty 24.4, but expected earnings growth is just 11%.
Sectors like consumer staples, healthcare, and IT are especially pricey compared to what they're earning.
What stands out for investors
On the flip side, financials, utilities, industrials, and energy sectors look like better deals based on their current valuations.
Large-cap stocks have a P/E of 22.8; mid-caps are even higher at 28.1.
Small-cap stocks top the chart with a P/E of 29.5—even though their earnings growth isn't much stronger—so they're also considered overvalued.
Basically, it's a reminder to be smart and strategic if you're thinking about investing right now.