Did You Know? Over 50% of Nifty Stocks Are Trading at a Premium! 📈

Yes, you read that right!

Even though the market has dropped by over 2% in the last 5 months, about 50% of Nifty stocks are still more expensive when analyzed through their historical prices.

What Does It Mean When Stocks Are Expensive? 🤔

When stocks are priced higher than their long-term averages, they are considered overvalued.
On the other hand, if they are priced lower than historical trends, they are considered undervalued.

Why Do Stocks Become Expensive?

• High growth expectations 🚀
• Demand in specific sectors ⚡
• Investor sentiment & speculation

Investors often pay a premium for stocks they believe will perform well in the future.

Top 5 Overvalued Nifty Stocks 💰

1️⃣ Bharat Electronics – 215% Premium

• Aims to achieve ₹25,000 crores in order inflows by FY25.
• Has already secured ₹10,800 crores so far.

2️⃣ Power Grid Corp. – 71% Premium

• Received orders for transmission & distribution projects from KEC International.
• Aims to improve electricity transmission across India.

3️⃣ Grasim Industries – 69% Premium

• Plans to set up a manufacturing unit in Chamrajanagar, Karnataka.
• Focused on producing copolymer acrylic emulsion to support construction sector growth.

4️⃣ Tech Mahindra – 53% Premium

• Launched The Indus Project, a large language model under ₹50 lakh.
• Aims to promote and preserve Indic languages.

5️⃣ Bajaj Auto – 45% Premium

• Set to launch e-Rickshaws to target sales in FY26.
• Looking to boost EV sector performance.

What’s the Trend? 📊

Many of these stocks belong to high-growth sectors like:

• Energy & Power
• Defense & Infrastructure
• Technology & Manufacturing

Key Observations:

• Capital-intensive sectors (like defense & power utilities) tend to maintain high valuations, even during market corrections.
• Stocks with government contracts continue to attract premium valuations.
• Valuations are driven by future growth expectations—not just current market conditions.

📌 Note: The data is as of Feb 4 market data.
If you're comparing it with live market data, there might be minor discrepancies.

Stay informed & trade smart! 🚀