Bernstein said Indian stocks look inexpensive relative to their own historical range after a decline but remain expensive compared with global peers. According to Sina Finance, analysts Venugopal Garre and Nikhil Arela wrote in an October 19 research note that valuation adjustment is a lengthy process and that they do not believe Indian valuations have entered a new regime. Bernstein said the Nifty remains the world’s third-most expensive equity index, trading above many Asian markets with stronger medium-term growth prospects, but could see a modest rebound through mean reversion after its steep decline this year. Amid a weaker macroeconomic backdrop, high oil prices, elevated yields and persistent geopolitical risks, Bernstein lowered its Nifty target to 25,000 from 26,000. The index currently trades at 18 times estimated FY28 earnings. Bernstein said expectations of a long-term capital gains tax cut and a reversal in the AI rally are merely narratives, not substantive catalysts. The Nifty is down 12.5% year to date.