Market valuations are attractive; buy selectively for long term: Analysts

Over the past few months, rising interest rates amid surging inflation has dented market sentiment across the globe

The sharp correction in the Indian markets from their peak levels has made valuations attractive, said analysts, who advise buying selectively, but only from a long-term perspective.

56 of the Nifty100 stocks, according to Mahesh Nandurkar, managing director at Jefferies, now trade below the 10-year historical averages, including stocks in financial, select auto, and pharma sectors.

"Valuation (one-year forward consensus PE) has declined 25 per cent from October 2021 peak, almost matching the 33 per cent price-earnings contraction during the 2011 tightening cycle when repo rates went up by 375 basis points (bps) versus 250 bps this cycle. Consequently, valuations