Quant – Navigating Crests & Troughs – Dec’25 Sectoral PE trend
Published on 02 Jan 2026
In December 2025, most sectors traded at valuations above or near their long-term averages, reflecting strong market sentiment. The Auto, Capital Goods, Chemicals, Healthcare, and IT sectors had forward PE ratios slightly higher than their long-term averages, while the Electricals sector showed the sharpest premium over its average. Consumer Durables and FMCG remained close to their respective averages, with FMCG slightly below. Construction Materials and Logistics stayed mostly in line with long-term trends. Overall, market valuations remained high, with Electricals and Consumer Durables standing out for their richer valuations.
