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Stocks

Nifty growth now less than 10%

Results today:

  • RCOM showed 23% EPS growth.
  • DLF’s consolidated shows a growth of 10.86%.
  • Nalco’s EPS grew 17.6%.
  • TataSteel was up 1.27% on EPS (considering last EPS adjusted down by the factor given in this circular)

For some reason the NSE site shows the Nifty EPS down to 238. This is calculated using Nifty P/E (given as 18.21 today) and Nifty Close (4333). Let me go with this, and I’ll revi

237 is ridiculous. It’s there from 220 same time last year, and with just one company (HCLTECH) to go – and that comprises 0.52% of the index. Even at 241 (as reported yesterday) we aren’t growing much.

This is less than 10% EPS growth for the Nifty.

In Feb, the Nifty EPS grew 13%. In May, it was 11%. It’s the end of July today, and with nearly all results out, we are less than 10%.

Too much momentum, and too much inertia. We can’t stay at a P/E of 18 with these growth rates. Time to move over to bonds. Oh, sorry, nobody trades there anymore. Hmm.