Coronavirus outbreak eats into stock valuations, market plunges 34%

Half of Nifty 50 stocks are trading at single-digit P/E ratio

The Indian stock market has plunged 34 per cent from its record high. As a result, the price-to-earnings (P/E) ratio for the Nifty50 index has declined to 12.3 from 18 at the start of the year. The Nifty’s valuation is still slightly above the 2008-09 global financial crisis trough level, when it had fallen to 11.
 

However, a record 50 per cent of the Nifty stocks are currently trading at a single-digit P/E ratio. So, is this a good time for bargain hunting? Experts say such low valuations are a signal that the market is pricing in huge disappointment in