Though the headline P/E has not seen a sizeable change compared to pre-Covid era, a lot of changes have happened within the index with almost 70% stocks in Nifty trading above their long-term valuations, Lohchab said.
India boasts numerous top-tier, high-quality companies and presents a wide array of opportunities for long-term investors, highlighting the untapped potential.
The analysts said that the spread between bond yield and equity yield is at “uncomfortable” levels.
Besides the liquidity story, the future looks bright for Indian companies on the back of anti-China sentiments and the growth of the middle class, say analysts.
According to Sachin Shah, Fund Manager at Emkay Investment Managers the undertone for market continues to be buoyant. He thinks Larsen and Toubro would be a good long-term bet.