India’s benchmark Nifty 50 is entering a valuation reset, with its forward price-to-earnings multiple falling to 17.4 times from 21.5 times two years ago. Alchemy Capital Management Deputy CIO Alok Agarwal says the index is now close to its cheapest level since the Covid pandemic, despite delivering no returns over the period.
Agarwal expects the next phase of gains to come from beyond large caps, with earnings growth emerging in mid- and small-cap stocks and investment opportunities expanding across AI infrastructure, healthcare, manufacturing and selected defence companies.
