Positive impactResults
ETMarkets Smart Talk | Nifty at 20.5x is not expensive; smallcaps are where valuations worry us: Pradeep Gupta
Economic Times 1 hr ago·4 Sept 2026, 3:32 am
Pradeep Gupta suggests that the Nifty 50 index is not overvalued, even though it is currently trading at 20.5 times its earnings. He points out that this valuation is actually 12% lower than the index's 10-year average. Gupta believes this discount is justified because corporate earnings are growing, which supports the current price levels.
He argues that investors should not worry about the broad market's valuation. Instead, the focus should shift to small-cap stocks. Gupta states that valuations in the small-cap segment are a bigger concern. He believes that the premium paid for these smaller companies is currently too high compared to their growth potential.
Investors should monitor the earnings growth of large-cap companies to confirm that the market is fairly valued. Simultaneously, they need to watch for signs of a correction in the small-cap space. A sharp decline in small-cap prices could indicate that the market is overpaying for these stocks, regardless of how the Nifty performs.
Key takeaways
- Category: Results.
- AI reads the tone as positive (potentially bullish) for the stock.
Why it matters
A routine update. The tone is positive — historically associated with upward pressure, though not predictive. Use the price and stock snapshot to gauge how the market is responding.
