ET Intelligence Group: Valuations of Indian equities have eased after the recent sell-off but that may still not be enough to lure foreign funds back here as the country’s main share indices continue to trade at a premium to emerging market peers.

At the end of Tuesday’s trading session, the NSE Nifty 50 and the BSE Sensex had a trailing price-earnings (P/E) multiple of 21.2 times and 21.3 times, respectively. This compares with their P/Es of 22.8 at the beginning of the current calendar year. The Indian benchmark P/Es have softened from the levels of over 23 two years ago. This shows the market is cheaper than it used to be, tempering investor concerns of excessive valuations, which, along with slowing growth, has contributed to foreign investors‘ risk-aversion towards India.

The valuation premium of Indian benchmarks has now narrowed with respect to nine out of 12 major global equity indices. For Instance, Nifty’s premium over the Hong Kong benchmark has reduced to 1.8 times from 2.3 times at the beginning of the year. The premium with respect to the German DAX and French CAC 40 has fallen to around 1.2 from 1.5 by similar comparison. In the case of other benchmarks, including the US Dow Jones and S&P 500, Indian benchmarks continue to trade at a marginal discount, as they did earlier.
The benchmarks have shed over 8% in 2026 so far, including a 4% drop since the beginning of March as investors turn cautious amid the rising concerns over the impact of the West Asian conflict between Iran and Israel. On a year-to-date basis, India has the second-worst performing equity market among major markets in the world behind Indonesia where the local benchmark has lost 14%.

Mumbai: Indian stocks Tuesday rebounded from multi-month lows, tracking gains in risk assets across Asia, while the rupee climbed 53 paise against the US dollar after crude oil prices slumped about a quarter – or nearly $30 a barrel – over two days from levels not seen since the earliest days of the Ukraine war nearly four years ago.

The rupee closed at 91.80 per dollar amid likely RBI interventions, prompting traders to buy the dip. It had previously closed at a record low of 92.33. Oil prices plunged nearly 10% from their panic-driven peak a day earlier, but were paring losses as of press time.

Risk assets mirrored the currency’s smart recovery. The NSE Nifty climbed 1% to 24,261.60. The BSE Sensex advanced 0.8% to 78,205.98.

Sectoral Indices Up
Both gauges had fallen around 3% over the past two sessions.

“Slide in crude prices yesterday [Monday], after touching $119, and further falls on Tuesday led traders to cut their bearish bets,” said Siddarth Bhamre, head of research, Asit C Mehta Intermediates. “The West Asia conflict had led to the build-up of ‘panic shorts’ in the system, which got squeezed out as Donald Trump indicated the war is near its end.”
Across Asia, South Korea jumped 5.4% while Japan gained 2.9%. Hong Kong and Taiwan climbed more than 2% each. China advanced 0.7%.
Analysts said that while the rebound could extend, investors remain cautious given the volatility in crude oil prices on account of the conflict in West Asia.
Some uncommitted investors with higher cash holdings are also likely to have deployed money since the declines offered decent entry points, said Bhamre.

All sectoral indices climbed except the IT and oil & gas indices. The Nifty Auto index jumped 3.1% and Nifty Consumer Durables index gained 2.7%. Bank Nifty advanced 1.6% and the PSU Bank index moved 2.2% higher. “Some weak hands squared off their short positions after Trump said that the war could wrap up soon. It also led to some long build-up in outperforming sectors, such as auto and pharma,” said Rajesh Palviya, head of technical and derivatives, Axis Securities.

The rupee, meanwhile, traded in the range of 92.19 per dollar and 91.72 per dollar. Brent crude oil prices cooled to around $93 per barrel, from about $119 per barrel Monday after the US President said “the war is very complete.”

The dollar index, too, decreased to 98.5 from nearly 100 levels the previous day, strengthening Asian currencies.

‘Cautious Optimism’
Still, fuel price fluctuations remain the key driver for the rupee’s trajectory, and the pace of deprecation would increase if oil prices trade above $100 per barrel, traders said.

“With crude prices cooling and the dollar slightly weaker, sentiment for the rupee has improved. I expected the trading range to remain between 91.25/$1 and 92.60/$1,” said Jateen Trivedi, currency research analyst at LKP Securities. “Crude price movements and the direction in the dollar index would continue to guide the currency’s near-term trends.”

Energy prices remain a major concern for risk assets, too, with analysts explaining a lower-than-expected decline in the fear gauge to suggest that a spike in oil prices could dent stocks.

The Volatility Index (VIX) dropped 19.1% to 18.9 – indicating that traders tempered risk expectations.

Foreign portfolio investors sold shares worth ₹4,672.7 crore on Tuesday. Their domestic counterparts bought shares worth ₹6,333.3 crore. In March, global investors dumped stocks worth ₹33,429.6 crore.

Bhamre said while the rebound could extend in the short term, the preceding corrections were substantial. “Investors are not advised to get carried away with the rebound since it is unsure if the bottom is made,” he said. “There is no big rally in the offing. Unless the tensions flare up again, the markets are expected to see minor declines instead of deeper cuts. The volatility and global risk-off sentiment could keep a lid on the gains.”

The initial public offering of SoftBank‘s PayPay is likely to price around the low end of its marketing range as war in the Middle East roil markets, said ‌two people ⁠familiar ⁠with the matter.

The IPO book was covered more than five ​times, one of the people said. It has now closed and ​pricing will be finalised after U.S. market hours on Wednesday, the person said.

The Japanese payment app operator was offering 55 million American depositary ⁠shares, priced $17 ‌to $20 apiece, a filing this month showed, targeting a valuation of up to $13.4 billion.

The ⁠people declined to be identified as the ​information is not public. PayPay declined to comment.

PayPay ​has played a central role in encouraging Japanese consumers to move away from a preference for cash by offering rebates on its payments app.

However, it has had a bumpy IPO path. Its ‌IPO roadshow was initially postponed after markets were jolted by conflict in the Middle East, ​Reuters reported ​last week.
It ⁠had already postponed the IPO last year during the U.S. government shutdown, which disrupted regulatory processes and delayed regulatory filing.

PayPay ​plans to list on the Nasdaq under the symbol “PAYP”. Reuters first reported its plans for a U.S. listing in 2023.

Ford is recalling more than 83,000 vehicles in two separate actions due to issues that could increase the risk of a crash, federal regulators said.

The first recall affects 35,772 model year 2025-2026 Explorer SUVs and the dynamic bending light feature, according to the notice filed with the National Highway Traffic Safety Administration.

The affected vehicles have an incorrect headlamp control module software calibration that results in the right headlight turning in the opposite direction of a vehicle turn.

FORD RECALLS 1.74 MILLION VEHICLES DUE TO REARVIEW CAMERA BLACKOUTS, ISSUES

“When turning the steering wheel on a left curve, the driver’s side (LHS) bending light correctly follows the turn, while the passenger side (RHS) light bends away from the curve,” the recall report said. “Conversely, when turning on a right curve, the left-hand light follows the steering wheel and bends to the right, while the right-hand light bends inward towards the left.”

The report said a headlight that turns incorrectly could result in increased glare to other drivers and increase the risk of a crash.

FORD IN DEEP WATER AFTER SWEEPING RECALLS HIT EVERY MODEL SINCE 2020 – WITH ONE EXCEPTION

Ford said it is not aware of any accidents or injuries related to the issue.

Updates to fix the headlight control module software will be available over the air or through dealerships at no charge. Owner notification letters are expected to be mailed March 23.

In a separate action, Ford is recalling 47,804 vehicles due to issues with the engine gas recirculation (EGR) valve that could lead to a loss of motive power, most likely at low speeds, which Ford said increases the risk of a crash.

FORD BUILDS ONE-OF-A-KIND EXPLORER FOR POPE LEO XIV

The recall affects certain model year 2025 Ranger, Mustang, Maverick, Explorer, Escape, Bronco, Bronco Sport, Lincoln Nautilus and Corsair vehicles with 1.5-liter, 2.0-liter or 2.3-liter engines.

Ford said it is not aware of any accidents, injuries or fires related to the condition.

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The automaker said a fix is still under development. Owners will be notified by mail once a remedy is available and will need to take their vehicles to a Ford or Lincoln dealer for a free repair.

In recent years, the way people approach their jobs has undergone a significant transformation.

Advances in technology, changing expectations from employees, and the experiences of recent years have all contributed to a shift in how organisations structure their work environments. One of the most notable developments is the growing popularity of hybrid work models, which allow employees to split their time between working remotely and spending time in a physical office.

This shift represents a broader cultural change in how businesses view productivity and flexibility. Rather than requiring employees to be present in the office every day, many organisations now recognise that different tasks and working styles benefit from different environments. As a result, companies are experimenting with new approaches that combine the advantages of both remote and office-based work.

Why Flexible Work Models Are Gaining Popularity

Many businesses have found that flexible working arrangements provide benefits for both employers and employees. From a recruitment perspective, offering flexibility has become an important way to attract skilled professionals. Job seekers increasingly value roles that allow them greater control over their working patterns, and companies that offer this flexibility often stand out in competitive industries.

Productivity is another key factor. For tasks that require focus and minimal interruption, working from home can often be more efficient. Meanwhile, the office remains a valuable environment for collaboration, brainstorming, and team discussions. A hybrid approach enables organisations to use each setting for its strengths.

Businesses may also benefit financially. Reduced office occupancy can lead to lower operational costs, while employees save time and money by commuting less frequently. These practical advantages have made hybrid working an appealing option for many companies.

Rethinking the Modern Office

As working patterns evolve, organisations are reconsidering the role of the office itself. Instead of being a place where employees simply sit at desks for the entire workday, offices are increasingly designed as spaces for collaboration and interaction.

Modern workplaces often feature flexible layouts with shared desks, breakout areas, and meeting rooms that encourage teamwork. Social spaces and informal seating areas can also help foster creativity and connection among colleagues. This shift reflects the idea that when employees come into the office, their time should be focused on activities that benefit from face-to-face interaction.

To support these changes, many companies are also reviewing their workplace strategies. Resources such as guidance on hybrid working can help organisations understand how to balance remote and office-based work effectively while ensuring that teams remain productive and connected.

The Role of Technology

Technology is a central component of successful hybrid workplaces. Cloud-based platforms allow employees to access files, software, and systems from almost anywhere, making it possible to collaborate even when team members are not in the same location.

Communication tools have also become essential. Video conferencing, instant messaging, and project management platforms help teams stay connected and organised. When used effectively, these technologies ensure that remote workers remain fully involved in discussions, projects, and decision-making processes.

However, technology alone is not enough. Organisations must also develop clear communication practices so that everyone knows when and how to connect with colleagues, regardless of where they are working.

Supporting Employee Wellbeing

One of the biggest advantages of hybrid working is the potential improvement in work–life balance. Employees can often organise their schedules more effectively, allowing them to manage personal commitments while maintaining professional responsibilities.

At the same time, businesses must be mindful of potential challenges. Remote workers can sometimes feel disconnected if communication is limited, and the absence of clear boundaries between work and home life may lead to longer working hours. Establishing clear expectations and encouraging regular check-ins can help ensure that employees feel supported and engaged.

A Long-Term Shift in Workplace Culture

Hybrid working is increasingly seen as a long-term evolution rather than a temporary adjustment. Organisations that successfully adopt this model are often those that focus on flexibility, strong communication, and thoughtful workplace design.

By recognising that productivity does not depend solely on location, businesses can create environments where employees feel trusted, motivated, and able to perform at their best. As workplace expectations continue to evolve, hybrid models are likely to remain an important part of the future of work.