Alchemy's Agarwal sees Nifty valuations near post-Covid lows
In short
Alchemy Capital’s Alok Agarwal says Nifty valuations have fallen sharply from 2024 levels and are now near post-Covid lows.
He thinks the next leg of market gains may spread beyond large companies. He points to mid- and small-caps, AI infrastructure, healthcare, manufacturing and some defence stocks, while global yields and foreign flows still matter.
What the reporting says
Alchemy Capital’s Alok Agarwal said Nifty valuations have reset sharply from 2024 levels and are now near post-Covid lows. He said the next phase of market growth may broaden beyond large caps, with opportunities in mid- and small-caps, AI infrastructure, healthcare, manufacturing and select defence names. The note also said global yields and FPI flows remain key, while the exact market impact is still unknown.
Why it matters
Alchemy Capital’s Alok Agarwal said Nifty valuations have reset sharply and sit near post-Covid lows, suggesting a different setup for Indian equities. He expects market gains to broaden beyond large caps, with interest in mid- and small-caps, AI infrastructure, healthcare, manufacturing and selected defence companies. Global yields and FPI flows were flagged as important drivers, but the reporting does not quantify the valuation move or the timing of any rotation.