The Indian stock market currently seems to be undervalued, even more than the bad times of 2008-09. The BSE-500 index, which represents more than 90 per cent of the Indian stock market, is trading at a price to book value of 2.2 which is just 15 per cent above the low of 1.9 during the crisis of 2008-09. Out of the 500 companies on the index, 197 are trading below their book value. This is significantly higher considering the current level of the market which is the highest number at this level of the index (as evident from the graph below and the highlighted line representing the current level).