Extended Nifty consolidation may be setting up the next bull run: Edelweiss MF study

An Edelweiss Mutual Fund study found that in 9 of 11 instances when the Nifty two-year compounded annual growth rate was flat, investors earned between 13% and 50% returns over the following year, with eight of eleven occasions delivering 10% to 40% annualised returns over three years. The Nifty has declined 3.52% over the past year and remained largely flat over two years, currently trading at 18.5 times one-year forward Price to Earnings against 24 times two years ago. Fund managers said large caps are cheaper than mid and small caps due to sustained FII selling, though financial advisors recommend staggered investments and a buy on dips approach given the global environment.