Quant – Navigating Crests & Troughs – Oct’26 Sectoral PE trend
Published on 03 Nov 2026
Overall, Oct’26 valuations witnessed moderation across most sectors. Automobiles, Auto Parts & Equipment, Cements, Defence, Oil & Gas, Pharma, Power Generation & Distribution and Textiles continue to trade above their LTAs. Notably, Cements, Defence and Pharma remained above their respective SD (+1) levels, while Power Generation & Distribution traded at its SD (+1) level. Capital Goods and Metals & Mining moderated to trade in line with their historical averages.
In contrast, Agro Chemicals, Building Materials, Chemicals, Consumer Durables, FMCG, Hospitals, Hotels, IT, Real Estate and Retail remained below their LTAs. Building Materials and FMCG ended the month below their respective SD (-1) levels, while IT traded at its SD (-1) level. Consumer Durables, which started the month above its LTA, moderated to trade below its historical average by month end. Hotels and IT, however, witnessed an expansion in valuations during the month, although both continued to trade below their LTAs.
