Jefferies Raises Concerns Over Indian Midcap Valuations

According to a report by Jefferies, the Indian stock market is once again facing concerns around high valuations, particularly in the midcap segment.

- TBG NETWORK

The report pointed out that the recent market rally has pushed valuations to high levels, raising questions about sustainability and risks going forward. Jefferies stated, "The rally in the market means valuations have become an issue again, particularly in the mid-cap space." The report highlighted that the benchmark Nifty Index is now trading at 22.2 times its 12-month forward earnings after rising 14.1 percent from its recent low on April 7. The midcap space has seen even sharper gains. The Nifty Mid-Cap 100 Index has surged by 23.7 percent since April 7 and is now trading at a steep valuation of 27.1 times 12-month forward earnings.