With markets trading at close to lifetime highs, a number of sectors are now selling at record-high premiums. The current valuations of a number of sectors now command a premium to even their 10-year averages. The run-up in demand for stocks in these sectors means that the value proposition has declined in them. These sectors now increasingly offer little on the table for fresh investors. This story looks at four such sectors that trade at least 30 per cent higher than their 10-year average valuations. Investors are advised to exercise caution and keep an eye on the valuations before investing in these sectors.
Following are the recommended sectors:
- FMCG - Hot gets hotter
- Cement - The demand factor
- NBFCs - the new craze
- Retails - The mega rush