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Why 50% of Nifty Stocks Still Look Expensive Despite a Market Fall

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SAHI

10 months ago

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.


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.

  • High growth expectations 🚀

  • Increased demand in specific sectors

  • Investor sentiment & speculation

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


  • Aims to achieve ₹25,000 crores in order inflows by FY25.

  • Has already secured ₹10,800 crores so far.

  • Received orders for transmission & distribution projects from KEC International.

  • Aims to enhance electricity transmission across India.

  • Plans to set up a manufacturing unit in Chamrajanagar, Karnataka.

  • Focused on producing copolymer acrylic emulsion, supporting the construction sector's growth.

  • Launched The Indus Project, a large language model under ₹50 lakh.

  • Aims to promote and preserve Indic languages.

  • Set to launch e-Rickshaws to target sales in FY26.

  • Looking to boost its performance in the EV sector.


Many of these stocks belong to high-growth sectors like:
Energy & Power
Defense & Infrastructure
Technology & Manufacturing

🔹 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! 🚀

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