{
  "id": 10320630,
  "title": "Two years on, Indian equities remain stuck in a grind",
  "url": "https://urgent.news/2026/09/28/two-years-on-indian-equities-remain-stuck-in-a-grind",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-28T00:06:10.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/two-years-on-indian-equities-remain-stuck-in-a-grind/articleshow/134528952.cms"
  },
  "original_language": "en",
  "account": "Two years have passed since Indian equities entered a stagnant phase, prompting investors to question their patience, accustomed as they are to the frequent booms and busts of recent times. This period, marked by modest or no returns, has been punctuated by intermittent spikes in mid- and small-cap stocks, keeping the market lively for retail investors. However, the reality is that generating profits has become increasingly challenging. Fund managers are increasingly relying on technical signals rather than fundamentals, contradicting their preference for conviction-driven stock-picking. This dilemma is further complicated by low foreign investment, high global bond yields, and rising oil prices. Despite the Nifty falling 11.6% and the Sensex dropping 13.6% since the end of September 2024, the Nifty Midcap 150 has seen a slight increase of 0.3%, while the Nifty Smallcap 250 has decreased by 1.3% and the Nifty Microcap 250 has risen by 2.8%, driven by a rebound from April lows. A welcome development is the reduction in valuation froth, with the Nifty now trading at a PE ratio of 20.9 times, below its five-year average of 23.5 and 10-year average of 23. Though valuations remain elevated, the Nifty Midcap 150 is trading at 31.1 times, lower than its five-year average of 37.3 and 10-year average of 33.5. The Nifty Smallcap 250 is even more discounted, at 31.7 times, below both its five-year average of 37.7 and 10-year average of 28.3. India's valuation compared to global markets has narrowed, with the Nifty now at 18.5 times, a significant drop from September 2024 when it was among the world's most pricey markets, excluding the US. Despite this, global strategists view Indian stocks, particularly large-caps, as relatively attractive compared to 2024, though a clear trigger remains elusive.",
  "summary": "Since September 2024, Indian equities have experienced a challenging market phase with mixed returns. The Nifty and Sensex have seen significant declines, while small and mid-cap stocks have performed relatively well. Despite the difficulties, some valuation froth has been removed from the market, presenting potential buying opportunities. Global investors are showing interest but lack concrete…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}