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Bad breadth: Broader market continues to perform poorly

Given the spate of downgrades after the disappointing Q2FY20 results and slim chances of earnings growth reviving in the near term, the broad markets continue to trend down.

Motilal Oswal MF, Motilal Oswal MF schemes, Motilal Oswal MF index fund, NFO, Large-Cap Index funds, Large-Cap funds, Index funds
Motilal Oswal Nifty 50 Index Fund and Motilal Oswal NiftyNext 50 Index Fund are the two new funds.
The Nifty now trades at 22.4 times FY20 estimated earnings (File image)
The Nifty now trades at 22.4 times FY20 estimated earnings (File image)

Given the spate of downgrades after the disappointing Q2FY20 results and slim chances of earnings growth reviving in the near term, the broad markets continue to trend down.

The benchmark indices continue to rise driven by a handful of stocks and now trade at exalted valuations — the Nifty now trades at 22.4 times FY20 estimated earnings, on a free-float basis and at 17.7 times estimated earnings for FY21.

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