Nifty price-to-book valuation hits pre-Covid level. Why the index is still not cheap

Nifty's price-to-book ratio has dipped below three for the first time in years, highlighting a significant shift. Despite this, earnings remain at high valuations, suggesting minimal potential for multiple expansions. Future advancement in the market will depend more on profit enhancements instead of valuation adjustments. India's economic outlook looks promising, with several firms outperforming expectations, necessitating careful stock and sector choices to achieve alpha.