Nifty’s hidden discount sale: 54% of top Indian stocks are cheaper now than in 2023. Is it time to buy?

Valuation correction has plunged more than half of India’s top-tier Nifty50 stocks into a discount sale, forcing a sharp recalibration of the risk-reward equation for investors.

While headline indices mask the underlying damage, about 54% of Nifty stocks are now trading at cheaper 12-month forward price-to-earnings (P/E) multiples than they were in 2023, according to estimates.The benchmark Nifty Index has slid 10% from its 52-week high as war in West Asia disrupts global supply chains and drives crude prices up, exposing corporate earnings to localized pressures.

Infosys has dropped to 15.4x from 25.2x, while Wipro has fallen to 14.4x from 20.3x.Reliance Industries has plunged to a forward P/E of 19.6x from 31.4x.

Adani Enterprises has plummeted to 70.3x from 112.1x.

In consumer staples, Hindustan Unilever (HUL) has softened to 44.1 times PE from 57.2x.Also Read | Ghayal hoon isiliye ghatak hoon!