Pune Investment：Indian stocks are so expensive？Buying call is cooling!

Analysts' buying call for the $ 5 trillion stock market in India is getting weaker.

According to the data compiled by the media, as of Tuesday (September 24), the total number of shares of the "Buy" rating in the Indian NSE NIFTY 200 index was 61, which is the lowest level in at least 10 years, and the 2023 fiscal year has the fiscal year.114.

As one of the most expensive stock markets in the world, the profit prospects of Indian listed companies have begun to dim, which has made analysts doubt whether analysts will further rise in some stocks that have continued to rise in the Indian stock market for several years.

In recent years, the Indian stock market has reached a record high in succession, and global investors have bet on the rapid expansion of the country's economy.After the Fed announced a significant interest rate cut last week, risk and emotions in the global market promoted the Nifty Index a record high on Tuesday.

Behind the stock market repeatedly hit the high, the Nifty 200 index valuation (price -earnings ratio) has reached 24 times that of its 12 -month expected return, which has increased significantly compared with the average value of 19 times in the past 10 years.

However, the profitable corporate profits that can promote the change of price -earnings ratio have begun to slow down.Kotak Instificational Equities predicts that in the current fiscal year as of March 2025, the net profit of the Indian benchmark NIFTY 50 company will increase by 8.4%and 20%last year.Pune Investment

Indian Financial Services DSP Mutual Fund strategist Sahil Kapoor pointed out that "many stocks are now outrageous." He said that due to its weak sales and its profit margin, analysts are postponing some profit estimates.

At present, market observers are arguing whether the recent returns can continue, but a kind of investment transition seems to be quietly proceed: some investors are turning to large -cap stocks with reasonable valuations, while others turn their funds to finance to financeWaiting for the sector, these sections have been behind the broader market.Surat Stock

More analysts began to modify the rating of Indian companies.Data show that more than two -thirds of the stocks in the Nifty 200 index currently show the "holding" rating. For example, this quarter, LIC Housing Finance LTD., Sun TV Network LTD. and Dr. Lal Pathlabs LTD.Multiplying rating for many times, analysts' average rating of them has fallen to "holding".Ten years ago, the proportion of "holding" and "buy" was almost equal.This change reflects a more cautious position.

Although the outside world is worried about the high valuation, India is still a highlight of the world.Because of the 196 stocks, only 5 stocks were rated as "selling", which was not much changed compared with 2015.

Kapoor Kapoor, a strategist at DSP Mutual Fund, believes that "India is a growth market, and analysts will try to give the rating of buying or holding instead of selling."

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