With the coronavirus pandemic escalating across the globe, investors are scrambling to price the market and estimate the damage that will be inflicted on companies.
Additionally, growing uncertainty over how long it will take to contain the pandemic is another overhang on the markets. Despite this backdrop, some investors and fund managers are suggesting it is time to go shopping for stocks, since the market may be close to its bottom.
But note that the market has seen quite a few sharp corrections in the past, which have taken valuations much lower than where they are currently.
The Indian market is yet to hit the lowest point in the trailing 12-month price-earnings multiple. As the chart alongside shows, the trailing price-earnings