India Poised for New Investment Cycle, Valuation Attractive
Mumbai, March 25 – India is entering a new, long-duration investment cycle driven by manufacturing, infrastructure, and energy sectors, according to a report released on Wednesday by Emkay Global Financial Services. Domestic equities are currently trading at fair valuations compared to global peers.The Nifty 50 is trading at approximately 20.23 times TTM (trailing twelve months) P/E, well below its 1-year median of 22.30x and 10-year median of 23.50x. This valuation is supported by robust macroeconomic fundamentals, including an expected GDP growth of 7.3–7.5 per cent and steady earnings expansion.
India’s valuation premium relative to emerging markets is underpinned by strong structural fundamentals. The economy is expected to grow at 7.3–7.5 per cent in FY26 (according to Fitch, MOSPI and consensus estimates), while Nifty earnings are projected to deliver a low-to-mid-teens CAGR over FY26–FY28. Political and policy stability further enhances investment predictability, bolstered by domestic capital flows through SIPs, EPFO, and insurance channels.
“India is on the cusp of a new investment boom, driven by healthier corporate balance sheets, policy support, and a more pragmatic approach from promoters,” said Yatin Singh, CEO, Investment Banking, Emkay Global Financial Services. “There is a clear shift towards sectors like manufacturing, infrastructure, and energy, where rising capital expenditure and global realignment are creating long-term opportunities.”
The report indicates that the Nifty 50 is trading at approximately 20 times P/E – below its recent historical averages. This valuation is considered reasonable when compared to global peers, including NASDAQ (33.23x), Nikkei225 (22.14x), and DAX (16.49x).
| Valuation Metrics | India (Nifty 50) | NASDAQ | Nikkei225 | DAX |
|---|---|---|---|---|
| TTM P/E | 20.23x | 33.23x | 22.14x | 16.49x |
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