Domestic equities near 11‑month lows, banks stay high
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- Domestic equity indices have been trading near their 11‑month lows as concerns over the latest Iran‑Israel conflict rise.
- Banks and financial companies have kept valuations above their three‑ and five‑year averages, with three‑quarters of lending enterprises still trading above long‑term price‑book (P/B) multiples.
- Non‑lending companies (manufacturing, services, trading) see 56 % trading below their three‑year price‑earnings (P/E) multiples, while 42 % appear cheaper than a decade ago.
- Overall market shows nearly 75 % of stocks in the sample below their 200‑day moving averages, indicating bearish sentiment.
- Trending stocks listed include SBI, Axis Bank, HDFC Bank, Infosys, Wipro, and NTPC.
Why it matters: Bank investors retain relative stability because valuations stay above three‑ and five‑year averages, while investors targeting non‑lending firms can exploit cheaper P/E multiples; the broad market’s bearish tilt, with three‑quarters of stocks under their 200‑day averages, signals heightened risk for equity buyers.
