According to a report by **OmniScience Capital** dated December 24, 2025, despite the Nifty 500 trading above **24x P/E**—which is higher than the expected earnings growth of 11%—active investors could still generate alpha in 2026.
The analysis reveals a significant share of value: **36 out of 100 large-caps**, **46 out of 150 mid-caps**, and **89 out of 150 small-caps** are undervalued or fairly valued. Overall, among companies with market cap above ₹1,000 crore, **63% (246 firms)** appear undervalued or rightly valued, while 66% of Nifty 500 constituents face overvaluation pressure concentrated in small-caps.
**Sectoral Insights** shows **Financials** (70 companies), **Utilities** (18), and **Industrials** (83) are largely fair valued or undervalued, providing ample opportunities for stock picking.
Caution is advised for **Consumer Staples**, **Health Care**, and **Information Technology**, which trade at high multiples relative to modest growth estimates—though more than 60 companies in these sectors remain fairly valued or undervalued.
The report estimates that passive investors could achieve high single-digit to mid-teen returns if earnings exceed 15%, while active strategies targeting mispriced opportunities could deliver **18-22%** returns.
OmniScience emphasizes that India’s maturing market structure favors selective, safety-first approaches amid high levels of global debt and RBI’s policy flexibility.
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