Nifty’s hidden discount sale: 54% of top Indian stocks are cheaper now than in 2023. Is it time to buy?

Nifty has corrected 10% from its 52-week high amid West Asia war-driven crude price spike and is now trading at 16.5x one-year forward P/E — a 13.6% discount to its 15-year average of 19.1x and 18.7% below its 10-year average of 20.3x. Major stocks including TCS, Infosys, Wipro, Reliance Industries, Adani Enterprises, and HUL have seen sharp forward P/E compression from 2023 levels, while Bharat Electronics and Bajaj Auto have bucked the trend. However, aggregate corporate earnings CAGR is set to decelerate from 18% (FY19–FY24) to ~9.5% (FY24–FY27E), and HDFC Securities flags inflationary headwinds from commodity prices, fuel hikes, and potential El-Nino risks for FY27, keeping near-term sentiment cautious despite supportive long-term valuations.