{"id":7279,"date":"2025-09-01T09:21:30","date_gmt":"2025-09-01T03:51:30","guid":{"rendered":"https:\/\/lakshmishree.com\/news\/?p=7279"},"modified":"2025-09-01T09:21:32","modified_gmt":"2025-09-01T03:51:32","slug":"nifty-valuation-surpasses-msci-india-index-after-addition-of-high-priced-stocks","status":"publish","type":"post","link":"https:\/\/lakshmishree.com\/news\/nifty-valuation-surpasses-msci-india-index-after-addition-of-high-priced-stocks\/","title":{"rendered":"Nifty Valuation Surpasses MSCI India Index After Addition of High-Priced Stocks"},"content":{"rendered":"\n<p>For the first time since <strong>January 2017<\/strong>, the <strong>Nifty 50 Index<\/strong> is trading at a <strong>higher valuation than the MSCI India Index<\/strong>, as the entry of expensive stocks has lifted its forward P\/E multiple above the globally tracked benchmark.<\/p>\n\n\n\n<p>According to Bloomberg data, the <strong>Nifty is trading at 22.77 times one-year forward earnings<\/strong>, compared with <strong>21.83 times for the MSCI India Index<\/strong>. So far in 2025, the Nifty has gained <strong>3.8%<\/strong>, outpacing the MSCI India Index\u2019s <strong>2.4% rise<\/strong>.<\/p>\n\n\n\n<p>The 2024 reshuffle brought in <strong>richly valued stocks<\/strong>. Eternal and Jio Financial replaced <strong>BPCL<\/strong> and <strong>Britannia<\/strong> in March, while <strong>Trent<\/strong> and <strong>Bharat Electronics<\/strong> entered the index in September, replacing <strong>Divi\u2019s Lab<\/strong> and <strong>LTIMindtree<\/strong>.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Eternal has surged nearly 72% since inclusion, trading at 362x forward earnings.<\/li>\n\n\n\n<li>Trent has jumped 34% with a P\/E of 92x.<\/li>\n\n\n\n<li>Bharat Electronics has gained 83%, valued at 46x P\/E.<\/li>\n\n\n\n<li>Jio Financial, despite falling 12%, trades at 92x P\/E.<\/li>\n<\/ul>\n\n\n\n<p>In comparison, the outgoing stocks were far cheaper: BPCL at 8x, Britannia at 46x, Divi\u2019s Lab at 60x, and LTIMindtree at 28x forward earnings.<\/p>\n\n\n\n<p>Other new entrants like InterGlobe Aviation (26x P\/E) and Max Healthcare (62x P\/E) have also contributed to the elevated valuation levels. Analysts believe the inclusion of growth-oriented and digital economy players will keep the Nifty\u2019s premium intact in the near term.<\/p>\n\n\n\n<p>The MSCI India Index, which covers around 158 large-cap and mid-cap stocks, is typically the preferred benchmark for global investors, sovereign funds, and passive ETFs. Traditionally, such broader indices trade at higher valuations than the Nifty due to their mid-cap exposure, but this trend has reversed in 2025.<\/p>\n\n\n\n<p>Do you have a news tip for Lakshmishree reporters? Please email us at <a>media@lakshmishree.com<\/a><br><sup><sub>Source: <a href=\"http:\/\/moneycontrol.com\/news\/business\/earnings\/expensive-stock-additions-push-nifty-valuation-above-msci-india-index-13504854.html\" target=\"_blank\" data-type=\"link\" data-id=\"http:\/\/moneycontrol.com\/news\/business\/earnings\/expensive-stock-additions-push-nifty-valuation-above-msci-india-index-13504854.html\" rel=\"noreferrer noopener nofollow\">Moneycontrol<\/a><\/sub><\/sup><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the first time since January 2017, the Nifty 50 Index is trading at a higher valuation than the MSCI India Index, as the entry of expensive stocks has lifted its forward P\/E multiple above the globally tracked benchmark. According to Bloomberg data, the Nifty is trading at 22.77 times one-year forward earnings, compared with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7280,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[50],"tags":[1259],"class_list":["post-7279","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indian-market","tag-nifty-valuation-msci"],"_links":{"self":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/7279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/comments?post=7279"}],"version-history":[{"count":1,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/7279\/revisions"}],"predecessor-version":[{"id":7281,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/posts\/7279\/revisions\/7281"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media\/7280"}],"wp:attachment":[{"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/media?parent=7279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/categories?post=7279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakshmishree.com\/news\/wp-json\/wp\/v2\/tags?post=7279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}