Brexit, US presidential elections, demonetization, none of these events—perceived as negative shocks—could keep the domestic equity markets down for a long time. After falling around 1,000 points (or roughly 11%) from a peak of 8950 in September 2016, the benchmark Nifty 50 is back up to 8650 or thereabouts—rallying nearly 10% in two months. If you didn’t jump in to buy stocks at the near-term bottom levels, you may find prices too high once again. At a forward price earnings (P-E) multiple of around 19 times, the benchmark is trading at a value which is above the historical 16 times average. Mid- and small-cap stocks too have rallied. For those who didn’t buy, have you missed the bus completely or are there pockets of value in this market where you can find stocks at good price?
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