Nifty valuations align with historical averages

After the recent market correction, Nifty's valuations have returned to levels that align with its 5-year and 10-year averages, according to a report by HSBC Mutual Fund.

- CORRESPONDENT

Despite short-term challenges, the report maintained a positive outlook on Indian equities, citing a strong medium-term growth potential. It said "Nifty valuations are now in-line with its 5/10-year average. We remain constructive on Indian equities supported by the more robust medium-term growth outlook."

The report acknowledges a temporary slowdown in India's economic momentum but emphasizes that the long-term outlook remains robust. One of the key factors supporting this optimism is the expected rise in India's investment cycle.