Wednesday, December 24, 2025

Business

Active investors may earn up to 22 pc in 2026 despite expensive market valuations

IANS | December 24, 2025 01:59 PM

NEW DELHI: Although 63 per cent of total market capitalisation appears overvalued, Indian market’s “inside” still offers rich opportunities for active investors, a report said on Wednesday outlining opportunities in 2026.

The report from OmniScience Capital said that 36 out of 100 large caps and 46 out of 150 mid-caps are undervalued or fairly valued despite Nifty 500’s valuation at over 24 times pricetoearnings appears elevated against 11 per cent growth.

The firm cited its analysis of 66 per cent of constituents of Nifty 500 being overvalued but valuation pressure is concentrated in smallcaps.

Among small caps, 89 of 150 companies are similarly undervalued or fairly valued, the report said. Within firms above Rs 1, 000 crore market capitalisation, around 63 per cent or 246 companies look undervalued or fairly valued, it added.

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