The Nasdaq Composite Index's premium to NSE Nifty IT Index has fallen to its lowest levels in nearly three years after shares of Apple Inc. tumbled.
The Bloomberg consensus forward price-to-earnings estimate of the U.S. index, which is heavily concentrated with technology companies, is at a premium of only 5.6 percent to the Nifty IT Index—the lowest since at least February 2016. The Nasdaq traded at an average of 34 percent premium to the 10-stock Indian technology gauge during the three years.
The valuation gap narrowed as shares of Apple—which comprises 9.7 percent of the Nasdaq 100—slumped nearly 10 percent after the Cupertino-based company cut revenue forecast over poor iPhone sales in China.
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