Are Current Large-Cap Valuations Signaling a Strong Investment Opportunity ?
Historically, starting valuations are crucial for predicting future returns. Current large-cap valuations are relatively attractive, offering a better risk-reward balance for medium to long-term investors. The BSE 100 to BSE 500 market cap ratio, at a 10-year low of 64% as of July 31, 2024, suggests large caps have underperformed relative to broader markets, indicating potential for mean reversion and future opportunities in large-cap stocks.