Nifty 50 At Bargain? Indian Equities Trade at Discount Against Nasdaq, DJIA, Hang Seng, Other Global Peers

The Nifty 50 has declined around 12.37% so far in 2026, bringing the benchmark closer to fair valuations relative to global peers such as the Nasdaq Composite, Dow Jones Industrial Average and Nikkei 225. According to a report by Emkay Global Financial Services, this correction had largely aligned Indian market valuations with global counterparts by February.

Building on this trend, the Indian stock market saw a sharper downturn in March, with the Nifty 50 slipping below 22,550. The decline intensified as the Iran-US war unsettled global sentiment and triggered risk-off flows. The turmoil has not only weighed on prices but also accelerated the cooling in valuations, with Indian equities undergoing a significant reset.

Nifty 50's Fair Valuation

In recent months, Nifty P/E (price to earnings ratio) has drastically corrected to fair valuation levels, as per the Emkay Global report released on Tuesday, March 24. A lower P/E ratio means that the market is no longer expensive and many stocks are now priced more reasonably relative to their earnings.

These kinds of markets also offer an attractive entry point to long-term investors as they are effectively paying less for the same earnings compared to before.

Nifty 50 vs NASDAQ vs DJII vs Nikkei 225 vs Hang Seng

As of February 2026, the Nifty 50 was trading close to its fair valuation of around 20x, while the Nasdaq Composite commanded a higher P/E of about 33.23x. The Dow Jones Industrial Average traded at approximately 20.36x, whereas the Nikkei 225 stood at around 22.14x.

"Nifty 50 has corrected to a reasonable valuation level of ~20x, which is much lower than the 1-year and 5-year median PE. Given the strong economy and supportive macros (example, the Iran-Israel and US war), India commands a valuation premium vs emerging market peers," read the Emkay Global report.

According to the report, while the Nifty 50 may trade at a premium to some global peers, this valuation is justified by India's strong macro fundamentals. These include robust GDP growth, expectations of healthy earnings expansion over the next two years, political stability, and sustained domestic capital inflows.

Three Sectors To Define India's Next Decade Of Growth

As India's economy continues to grow at a robust rate, there are three major sectors that are likely to drive the next decade of investment-led growth cycle.

As per Emkay Global report, "manufacturing, infrastructure and energy sectors form a mutually complementing triad, with growth in each sector fueling the other."

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