The Economic Times News

Is Nifty cheap for 2026 upside? Hidden valuation gaps challenge Wall Street's India rebound call

Wall Street forecasts a Nifty rebound by 2026, driven by earnings recovery and easing rates. However, hidden valuation gaps, with many Nifty constituents trading at high multiples despite modest growth, challenge this optimism. Large financials and PSUs mask the elevated valuations in other sectors, suggesting selective stock picking over broad index gains.