Nifty PE Ratio : Current PE Ratio of Nifty


What is PE Ratio? 


The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative to its per-share earnings. For example, suppose that a company is currently trading at Rs. 100 a share and its earnings over the last 12 months were Rs. 5 per share. The P/E ratio for the stock could then be calculated as Rs.100/Rs.5, or Rs. 20. EPS is most often derived from the sum of last four quarters. While EPS of a company remains the same for a quarter or a year, the stock market price changes everyday and hence the PE ratio also changes.

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The Babies being Born in America Today are the Luckiest Crop in History : Warren Buffett

Note: The text below is from Berkshire Hathaway's 2015 Annual letter to its shareholders. Please read it and then think from an Indian context. I would say, The Babies being Born in India Today are the Luckiest Crop in Indian History. And, the best part is above statement will hold true for the generations to come. The only preconditions are, stick to democracy and secularism :)

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Warren Buffett Quotes On Investment


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Multibeggers From Multibaggers: Few NPA Defaulters

It is an open affair that Indian Banking System has declared nearly Rs 4.4 lakh crore as bad loans till December — mostly from large corporate defaulters. Between 2001 and 2013, around Rs 2 lakh crore loans had been written off by banks. Combining these two figures it becomes a whooping Rs 6.4 lakh crore!!. Now the best part is, coming quarters will see more NPA disclosures. SBI chairperson has already signaled more pain in March quarter earnings on NPA woes.

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Top 50 Corporate Loan Defaulters List From AIBEA

All India Bank Employees Union (AIBEA), one of the biggest employees unions in India has  decided to publish the list of top 50 corporate defaulters in this country.Below are the companies which are eating our hard earned money which was paid as tax in various forms.

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Porinju Veliyath Apologies to "Dumb Jim Rogers"

In September 2015, Commodities trading guru and hedge fund manager Jim Rogers -  chairman of Rogers Holdings Ltd, was in news limelight as he publically admitted that he exited Indian Stocks completely. He made it clear to the market community that his exit is primarily due to the incompetency of the Indian Government and National Democratic Alliance (NDA) government has failed to live up to investors’ expectations.

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Dont Jump Into Markets Now: Saurabh Mukherjea, Ambit Capital

In our August 10 2015 post, we mentioned about the midcap mania in Indian market and discussed the possibility of a correction. We plotted the nifty chart and figured a head and shoulder pattern. We mentioned that if the neckline support of 7950 is taken there is a high probability of niftytouching 6850. Well, on last Friday, nifty touched 6869, just short of 19 points!!!. We still believe that markets have not bottomed out!!

Saurabh Mukherjea of Ambit Capital

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India in a Bear Market: Sridhar Sivaram is the First Person to Point Out "The King is Naked"

Well, We are in a bear market. It was so furious and fast that majority of investors could not even got a change to exit and protect the hard earned profit they had made in last 3 to 4 years. To quantify the injury, fouture.com, on its Feb 11 post, pointed out that investors have lost $1.78 trillion so far this year in US market itself.

The Brave Man!!

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Tribute to Chandrakant Sampat, The Oldest Value Investor of India

This post is a tribute to Chandrakant Sampat who passed away last week. Many of us might be hearing his name for the first time. But Chandrakant Sampat, called as India's warren Buffet, was one of the oldest and true value investors in Indian stock market arena. He was known for his discipline to investing, honesty and thoughtfulness. He was a source of  inspiration to several of today’s well known investment gurus.

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Indian Stocks - Market Capitalisation Explained

We are starting this session to help the new comers in stock market to understand the common terms used when dealing with companies. We are starting with Market Capitalization. We all know that there are different categories of stocks like large caps, mid caps, small caps and micro caps. When you analyze a company, we should be clear on which category the stock falls. This is highly important as the risk associated with a stock mainly depends on which category it belongs to. Normally large caps are low return, low risk stocks as the growth rate would be minimal but consistent. Small caps and micro caps are high return, high risk stocks as they can deliver high growth or a total collapse.

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