October 5, 2017

Value Investing by using Nifty P/E ratio

Investors should not judge nifty index or sensex by its value. Nifty at 8900 and Sensex at 29000 are merely numbers and one needs to take EPS of all the constituent stocks into consideration before making an investment decision. Whether the index is chep or pricey should be judged on the basis of its PE ratio rather than the value. Based on historical data and pure common sense, investors can safeguard their investment portfolio and earn handsome profit by following the investment rationale suggested in following table.
nifty pe ratio vs nifty chart


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