New inclusion in this month’s State of Indian Stock Markets.
I have also included ratio analysis for Nifty500 this time. So from this month onwards, you get historical analysis and Heat Maps of Nifty50 as well as Nifty500‘s key ratios, namely P/E, P/BV ratios and Dividend Yield.
Please remember that these numbers are averages of P/E, P/BV and Dividend Yield in each month. Neither Nifty50 heat maps nor Nifty500 heat maps show the maximum or the minimum values for each month.
Caution – Never make any investment decision based on just one or two ‘average’ indicators. At most, treat these Nifty heat maps as broad indicators of market sentiments and a reference of market’s historical mood swings. 🙂
So here are the Nifty 50 Heat Maps…
Historical P/E Ratios – Nifty 50 (Monthly Average)
P/E Ratio (on last day of August 2016): 24.09
P/E Ratio (on last day of July 2016): 23.62
Historical P/BV Ratios – Nifty 50 (Monthly Average)
Historical Dividend Yield – Nifty 50 (Monthly Average)
Now, to the historical analysis of Nifty500 companies…As the name suggests, Nifty500 is made up of top 500 companies which represent about 94% of the free float market capitalization of the stocks listed on NSE (as on March 31, 2016).
Nifty50 on other hand is an index of 50 of the largest and most frequently traded stocks on NSE. These represent about 65% of the free float market capitalization of the NSE listed stocks. So obviously, Nifty500 is a comparatively broader index than Nifty50.
Historical P/E Ratios – Nifty 500 (Monthly Average)
P/E Ratio (on last day of August 2016): 28.23
P/E Ratio (on last day of July 2016): 27.16
Historical P/BV Ratios – Nifty 500 (Monthly Average)
Historical Dividend Yield – Nifty 500 (Monthly Average)
Good one, Dev. I can see people tracking the Dividend, Dividend Growth % year on year of US stocks through some website (I assume). Is there any Website available to see these trend for Indian stocks instead of fetching the info one by one?
For example, take an Indian stock ABC, want to see the Dividend and Dividend growth % from 2000 to 2016 year on year. Where we can find this information?
Hi Jeno
Not sure whether free ones are there to do that. I do it manually on excel. Will let you know if I find one.
How about a graph juxtaposing PE, PB, and yield for Nifty 50? Similarly for Nifty 500.
Or, a graph containing both PE and Nifty 50/500?
Hi Dev,
Do you recommend buying nifty or bank nifty ETFs? (bankbees and niftybees)?
If not, how do we buy the index equivalent?
Hi Prashanth
The products like Nifty or Bank Nifty ETFs are fine by design. But if you are interested in putting in large amounts of money, liquidity can be a concern. You can also look for index tracking MFs (which might be tracking bank indices)
Thanks for the valuable information: addition of Nifty 500 is quite useful.
Glad you found it useful Pranav. I am open to suggestions to further improve this tracking. Do let me know if you have any suggestions.
Hey Dev..
I started SIP way back in 2010 amounting 30000/-pm. I need to know should I stay invested or book my profits.
Please help.
Funds name:
1) HDFC Midcap Opp fund
2)Birla Midcap Fund
3)HDFC top 200 fund
4)hdfc Equity Fund
5)Sundaram SMILE Fund.