Share markets in India finished flat as the sentiment turned tepid ahead of the outcome of the US Federal Reserve’s meeting later in the day. At the closing bell, the BSE Sensex stood lower by 45 points, while the NSE Nifty finished down by 2 points.

Sensex Is Fairly Valued

If we look at the historical valuations of the Sensex, one thing becomes clear immediately. The market is not overvalued. Yes, individual stocks are overvalued, but not the entire market. However, the markets aren’t cheap either. Interestingly, the Sensex P/E hasn’t crossed 25 since mid-2008.If we were to tentatively consider a P/E of 25 as an upper limit, at least in the short-term, we would still get an upside of about 13% from current levels.

Here’s why Sensex can rise 70% over next 2-3 years.

Meanwhile, the S&P BSE Mid Cap & the S&P BSE Small Cap finished up by 1% and 0.7% respectively. Gains were largely seen in realty stocks & auto stocks.

Telecom stocks finished the trading day on a firm note with Idea Cellular and Reliance Communications leading the gains.

Idea share price surged 9.6% in today’s trade after reports stated that ATC was close to completing a buyout of the firm’s tower business. As part of the deal structure, ATC may merge Idea’s tower business with its India portfolio as well as the acquired business of Viom. Idea Cellular has seen strong movements ever since the merger with Vodafone was announced. It surged over 45% in the past three months.

Asian stock markets finished mixed as of the most recent closing prices. The Shanghai Composite gained 0.08%, while the Nikkei 225 & the Hang Seng fell 0.16% and 0.15% respectively. European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.30% while Germany’s DAX is up 0.13% and France’s CAC 40 is up 0.10%.