This is the monthly update of the state of Indian stock markets. As of now, it comprises only of Nifty50’s P/E, P/BV ratios and Dividend Yield.
The numbers are averages of P/E, P/BV and Dividend Yield in each month. The maps don’t show the maximum and minimum values of each month. Caution – Please remember that relying solely on averages can be risky. Its like a 6-feet person drowning in a river which had an average depth of 4-feet. 🙂 So do not make any investment decision based solely on just one or two ‘average’ indicators. At most, treat these heat maps as broad indicators of market sentiments. So here are the Heat Maps…
P/E (Monthly Average)
P/E Ratio (on last day of May 2016): 22.60 P/E Ratio (on last day of April 2016): 21.24
P/BV (Monthly Average)
P/BV Ratio (on last day of May 2016): 3.40
P/BV Ratio (on last day of April 2016): 3.27
Dividend Yield (Monthly Average)
Dividend Yield (last day of May 2016): 1.32%
Dividend Yield (last day of April 2016): 1.37%
You can read about last month’s update here. The State of Marketssection has also been updated (link).
For detailed analysis of the relation between investments made at various P/E, P/BV and Dividend Yield levels and the historical returns, I suggest you have a look at these 3 posts:
A Good Financial Advisor can be the difference between meeting or missing your financial goals. For all your Financial Planning & Investment Advisory requirements, Talk To Us. Or simply Apply for Financial Plan.
Looking for Right Mutual Funds to invest?Launching SOON!
There are hundreds of mutual fund schemes. Do you get confused which are worth investing in? And do you have too many funds in your portfolio? Then Stable Model Mutual Funds can solve your problems.
Use the link below toPre-register (FREE) now to receive launch discounts!