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Overall, Jul’26 valuations remained broadly similar to Jun’26. Capital Goods, Cements, Chemicals, Automobiles, Auto Parts & Equipment, Textiles, Consumer Durables, Metals & Mining, Oil & Gas and Pharma continued to trade above their LTAs. Notably, Automobiles and Pharma moved above their SD (+1) levels, while Auto Parts & Equipment approached its SD (+1) threshold. Hospitals also moved from trading broadly in line with its LTA to a slight premium.

Defence and Power Generation & Distribution remained the most expensive sectors, trading well above their LTAs and SD (+1) levels despite some moderation in Defence valuations. In contrast, IT, FMCG, Hotels, Agro Chemicals, Building Materials, Real Estate and Retail remained below their LTAs, with Retail continuing to be the most undervalued sector. Overall, most sectors remained within their historical valuation bands, indicating a broadly balanced market environment.

Agro Chemicals PE remained stable at 19 throughout Jul’26, with no change between the start and end of the month. Compared to the LTA PE of 20, the current valuation remains marginally below average and within the historical valuation band of 9–39, with SD (+1) and SD (-1) levels at 26 and 14, respectively.

Auto Parts & Equipment sector PE expanded marginally from 34 at the start of Jul’26 to 35 by month end. Compared to the LTA PE of 30, the current valuation remains above average and is approaching the SD (+1) level of 36. The sector remains within the historical valuation band of 17–46, with SD (+1) and SD (-1) levels at 36 and 25, respectively

Automobile PE expanded from 27 at the start of Jul’26 to 29 by month end. Compared to the LTA PE of 23, the current valuation remains above average and has moved above the SD (+1) level of 27. The sector remains within the historical valuation band of 16–32, with SD (+1) and SD (-1) levels at 27 and 19, respectively.

Building Material PE remained stable at 44 during Jul’26, ending the month at the same level as it started. Compared to the LTA PE of 49, the current valuation remains below average but above the SD (-1) level of 39. The sector remains within the historical valuation band of 32–75, with SD (+1) and SD (-1) levels at 59 and 39, respectively.

Capital Goods PE moderated marginally from 37 at the start of Jul’26 to 36 by month end. Compared to the LTA PE of 31, the current valuation remains above average and is trading close to the SD (+1) level of 38. The sector remains within the historical valuation band of 19–50, with SD (+1) and SD (-1) levels at 38 and 24, respectively.

Cements PE remained stable at 36 throughout Jul’26, with no change between the start and end of the month. Compared to the LTA PE of 25, the current valuation remains significantly above average and above the SD (+1) level of 31, while remaining just below the historical peak valuation of 37 and within the historical valuation band of 11–37.

Chemicals PE moderated marginally from 2 at the start of Jul’26 to 31 by month end. Compared to the LTA PE of 29, the current valuation remains above average and below the SD (+1) level of 46. The sector remains within the historical valuation band of 11–68, with SD (+1) and SD (-1) levels at 46 and 12, respectively.

Consumer Durables PE remained stable at 48 during Jul’26. Compared to the LTA PE of 41, the current valuation remains above average and below the SD (+1) level of 53. The sector remains within the historical valuation band of 18–67, with SD (+1) and SD (-1) levels at 53 and 29, respectively.

Defence PE moderated from 37 at the start of Jul’26 to 35 by month end. Compared to the LTA PE of 19, the current valuation remains significantly above average and above the SD (+1) level of 30. The sector remains within the historical valuation band of 6–47, with SD (+1) and SD (-1) levels at 30 and 8, respectively.

FMCG PE remained stable at 37 during Jul’26. Compared to the LTA PE of 39, the current valuation remains marginally below average and below the SD (+1) level of 42. The sector remains within the historical valuation band of 30–49, with SD (+1) and SD (-1) levels at 42 and 35, respectively.

Hospitals PE expanded from 49 at the start of Jul’26 to 51 by month end. Compared to the LTA PE of 49, the current valuation remains marginally above average and below the SD (+1) level of 62. The sector remains within the historical valuation band of 28–98, with SD (+1) and SD (-1) levels at 62 and 37, respectively.

Hotels PE moderated from 35 at the start of Jul’26 to 34 by month end. Compared to the LTA PE of 47, the current valuation remains below average but above the SD (+1) level of 30. The sector remains within the historical valuation band of 27–95, with SD (+1) and SD (-1) levels at 63 and 30, respectively.

IT PE expanded marginally from 16 at the start of Jul’26 to 17 by month end. Compared to the LTA PE of 21, the current valuation remains below average and is at the SD (-1) level of 17. The sector remains within the historical valuation band of 14–33, with SD (+1) and SD (-1) levels at 26 and 17, respectively.

Metals & Mining PE remained stable at 11 throughout Jul’26. Compared to the LTA PE of 9, the current valuation remains above average and below the SD (+1) level of 12. The sector remains within the historical valuation band of 3–16, with SD (+1) and SD (-1) levels at 12 and 7, respectively.

Oil & Gas PE expanded marginally from 16 at the start of Jul’26 to 17 by month end. Compared to the LTA PE of 12, the current valuation remains above average and above the SD (+1) level of 15. The sector remains within the historical valuation band of 7–21, with SD (+1) and SD (-1) levels at 15 and 10, respectively.

Pharma PE expanded marginally from 34 at the start of Jul’26 to 35 by month end. Compared to the LTA PE of 29, the current valuation remains above average and marginally above the SD (+1) level of 34. The sector remains within the historical valuation band of 17–39, with SD (+1) and SD (-1) levels at 34 and 24, respectively.

Power Generation & Distribution PE remained stable at 23 throughout Jul’26. Compared to the LTA PE of 15, the current valuation remains significantly above average and above the SD (+1) level of 20. The sector remains within the historical valuation band of 7–26, with SD (+1) and SD (-1) levels at 20 and 10, respectively.

Real Estate PE remained stable at 29 during Jul’26. Compared to the LTA PE of 36, the current valuation remains below average and below the SD (+1) level of 50. The sector remains within the historical valuation band of 12–104, with SD (+1) and SD (-1) levels at 50 and 22, respectively.

Retail PE expanded marginally from 61 at the start of Jul’26 to 62 by month end. Compared to the LTA PE of 78, the current valuation remains below average and below the SD (+1) level of 103. The sector remains within the historical valuation band of 33–169, with SD (+1) and SD (-1) levels at 103 and 53, respectively.

Textile PE moderated from 24 at the start of Jul’26 to 21 by month end. Compared to the LTA PE of 18, the current valuation remains above average and below the SD (+1) level of 27. The sector remains within the historical valuation band of 5–39, with SD (+1) and SD (-1) levels at 27 and 9, respectively