Valuations are no longer the problem—but they aren’t cheap either The first and most obvious shift is in valuations. Large-cap stocks, especially in sectors such as banking, IT, healthcare and FMCG, are now trading at or below their long-term valuation averages. Market breadth has weakened sharply, with only a small fraction of stocks trading above key moving averages. When markets become reasonably priced, capital tends to return—not when optimism is at its peak, DSP MF report said. IT stocks, which had gone through a prolonged phase of re-rating, are now available below their long-term valuation ranges, even as their return profiles remain strong.

Source: Mint April 06, 2026 15:16 UTC