Mumbai, March 13 -- Escalating geopolitical tensions in West Asia and the resulting global risk aversion have triggered a correction in Indian equities-reviving a long-running debate on whether valuations are finally becoming more reasonable. Benchmark indices have weakened over the past two weeks as rising crude prices and continued foreign portfolio investor (FPI) outflows weighed on sentiment. The pullback follows months of trade-deal-fuelled exuberance and a sharp rally from budget-session lows, prompting investors to reassess whether the market's valuation premium has begun to moderate. However, a Mint analysis of more than 3,400 BSE-listed companies shows that while valuations have moderated from recent highs, a significant portion of stocks still trades at premium multiples. Overall valuations were visibly stretched when the Sensex touched its 52-week high of 85,762.01 on 2 January 2026. At that point, Mint's analysis shows that about 14.6% of BSE-listed companies were valued at more than 80 times their earnings. Another 5.2% traded in the 60-80x band, while 11.1% were priced in the 40-60x range. Nearly 15.8% of companies traded at multiples of 25-40x, and more than a quarter of the market was valued in the comfortable 10-25x band. The recent correction has moderately altered this distribution. By February 26, 2026-even before geopolitical tensions escalated further-the share of companies trading above 80x had already eased to around 12%. Since the war broke, that share declined further to about 11%. More stocks have shifted to lower valuation brackets as well. The share of companies trading in the 5-10x earnings range has risen to about 8.5%, compared with roughly 4.9% at its one-year high levels. "Valuation comfort has improved slightly. India is more investable than it was six months ago-but it remains a conviction, not a value play," said Sachin Jasuja, head of equities and founding partner at Centricity WealthTech....