Delivery based trades on the NSE decline due to valuation concerns

Investors are reluctant to take long term positions this year after the spectacular gains in 2023. The delivery based trades on the National Stock Exchange (NSE) have declined to below 36 per cent this year from an average of 38.1 per cent in 2023. Investors tend to seek delivery for stocks where they see a long term investment opportunity or tactical positional trade. Market participants attributed the fall in delivery share to elevated valuations, especially in the mid and smallcap segments. The Nifty50 is trading at a one year forward price to earnings (PE) multiple of 21.9 against a five year average of 19. The Nifty Midcap 100 is