- Wealth PMS (50L+)
The Nifty’s PE Ratio is the Nifty’s market cap divided by the earnings of the companies, added up. The ratio is used as a valuation relative to the past.
It’s easier to miss the big picture amidst the short-term noise. So let’s zoom out.
Currently, the PE ratio indicates that the Nifty 50 is at an attractive level to buy into.
(Note: Data source is the Nseindia website. The chart shows average historical NIFTY Price-Earnings ratio for the month from 1999 to the present. NSE used trailing four quarters’ standalone earnings from inception till March 2021. Starting April 2021, NSE uses consolidated earnings for the Price-Earnings calculation.)
Stocks that topped the charts or failed to impress this week.
IT pack got battered over the week even when the rupee continues to fall against the dollar. Usually, a falling rupee has made the stocks of IT firms go up. But, there’s fear of inflation-led global slowdown that’s dragging the sector down.
Wipro and HCL in particular are having a forgettable 2022. NTPC was the biggest gainer this week along with ONGC bouncing back after last week’s decline.
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