ONGC, Tata Steel Ltd, Dr Reddy's Laboratories Ltd (DRL), Apollo Hospitals Enterprise Ltd, Maruti Suzuki India Ltd and Coal India Ltd are some of the Nifty 50 stocks that are still trading at deep discounts to their historical averagesMumbai Stock Exchange. Grasim Industries, Reliance Industries, Bajaj Auto, Divis Labs and Adani Ports are a few other stocks that are trading at steep premiums over their 10-year PE multiples, data compiled by Motilal Oswal Securities showed.

At prevailing PE of 5.1 times, shares of ONGC are trading at 31 per cent discount to their 10-year average PE of 7.3 times. Dr Reddy’s Labs at a PE of 18.9 times trades at 26 per cent discount to its 10-year average of 25.6 times. Apollo Hospitals at 60.1 times trades at 26 per cent discount to its historical valuation average of 81.7 times. Maruti Suzuki India shares are available at 22 per cent discount, Coal India at 19 per cent discount while Tata Steel at 16 per cent discount to historical PE levels.

On the flip side, Grasim Industries at PE of 27 times trades at 93 per cent premium over its 10-year average PE of 14 times. RIL shares at 25.6 times are trading at 65 per cent premium over its long-term average PE of 15.6 timesSurat Stock. Bajaj Auto (56 per cent premium), Divis Lab (55 per cent premium) and Adani Ports (55 per cent premium) are some other stocks trading at steep premiums to historical averages.

Motilal Oswal Financial Services said India is witnessing its own mini-Goldilocks moment with excellent macros, robust corporate earnings, focus on manufacturing, capex and infrastructure creation, and valuations.

"That said, sectors with overheated valuations and recent sharp outperformance, viz. Industrials, Railways, Defense, and PSUs may see more moderation in valuations before they become attractive again from a risk-reward perspective," it said while suggesting ICICI Bank Ltd, ITC Ltd, HCL Technologies Ltd, Coal India Ltd, State Bank of India (SBI), Larsen & Toubro (L&T) and Mahindra & Mahindra (M&M), among its large cap stock bets.