Nifty valuation decent and reasonable; markets may see some small correction: Union Minister Goyal
Mumbai, Mar 1 (PTI): After some sell-off during the week, Union Minister Piyush Goyal on Saturday opined that the 50-share benchmark Nifty's valuation is decent and reasonable.
Goyal, who oversees the commerce and industry portfolio, said that there can be some more correction in the offing for the Indian markets.
A forward price-to-earnings ratio of 19 makes the Nifty valuations "decent" and "reasonable".
"Some of them (Nifty stocks) may have seen some downfall, but by and large the Nifty still reflects decent valuations," Goyal said, speaking at an event organised by mutual fund industry's lobby grouping Amfi here.
"At a P/E ratio of 19 for a developing nation which is the fastest growing country, it (valuation) is still reasonable - some small correction here or there may still happen," he added.
Goyal said that the ongoing correction in the markets should serve as a wake-up call for the ones who have not advised the small investors properly, and asked Amfi to ensure that it isolates those who have given bad advice to clients.
He also suggested that MFs should not give up on their duty and commitment to the larger market, and not concentrate on the returns alone.
Goyal, a chartered accountant, said the last 2-3 years have been a period of crazy growth in the market where the prices of a lot of stocks were driven by a compulsion of the market to deploy funds that they were receiving, and also the fear of missing out.
All the stakeholders have to reflect on the happenings in the recent past, he said, stressing that we cannot ignore the perils of the investment culture we have seen developing in some parts of the market.
He seemed to be particularly concerned with the activity in smaller companies and wondered how an auto dealer commanded huge valuations recently.
Without taking names, Goyal said a free trade agreement with one country is "almost done" and two more are chasing the government for a similar pact.
Earlier in the day, speaking at the Mumbai Tech Week, he said AI was used during the discussions on an FTA with the European Commission.
He also said that the fledgling AI field doesn't require an "industry status".
"The ghost of the industry tag has become very outdated," he said, adding that if you get the industry status, one can call inspectors to private houses.
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11-year-old dies by suicide after sexual assault in Bareilly; accused arrested
Bareilly (UP) (PTI): A 26-year-old man has been arrested for allegedly sexually assaulting an 11-year-old girl, who later died by suicide due to trauma, police said on Wednesday.
The post-mortem report confirmed sexual assault and multiple injuries on the minor's body, including bite marks and nail scratches. The cause of death was found to be hanging, they said.
According to ASP (South) Anshika Verma, the incident came to light on 27 April, when the girl, a Class 8 student, was found hanging at her home in Deoria Abdullaganj village under the Mirganj police station area. Initially, the family reported the death as suicide and was reluctant to pursue police action.
"The autopsy report changed the course of the investigation. It confirmed sexual assault and noted severe physical trauma. The cause of death was confirmed as hanging," Verma said.
A breakthrough in the case came from the statement of the victim's younger sister, who told police that the accused, Zeeshan (26), a resident of the same village, frequently loitered near the minor's school and allegedly gave her small sums of money to keep his interactions with her a secret, she said.
Police said that on the day of the incident, the accused allegedly lured the minor and assaulted her. Distressed by the incident, the child later took her own life while her mother was away, police said.
"Based on technical surveillance, CCTV footage, and statements from the family, we established Zeeshan's involvement. He was arrested near the Mirganj weekly market on Tuesday," they said.
