Indian Economy My View

Sectors With Possible Upside

As the markets are at all-time high, the valuation of nifty and sector has been stretched. So in the current situation which is the sector to invest were we still able to see upside is the question in everyone’s mind. To answer that question we have done simple analysis on the basis of PE. We have compared the Nifty PE with other sector’s PE. PE is valuation ratio of a company’s current share price compared to it’s per share earnings in other words it let us know whether it is currently overvalued or undervalued.

Nifty is currently trading at PE of 20.52 as compared to it CNX Pharma is trading at multiple of 40.45, CNX Media at 34.94, CNX FMCG at 34.22, CNX Auto 31.56, CNX infra 21.83, CNX IT at 20.97, CNX PSU Banks at 12.49, OIL and GAS at 12.65, CNX Energy at 14.01 and  CNX Metal at 16.51. If we compared the Sector PE with Nifty PE, CNX IT, media, infra, pharma, auto and FMCG has been fairly value. We believe that Investors should look invest in CNX PSU Banks, Oil and Gas Sector, Energy Sector and Metal Sector were still upside is left.

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