look news india
Ahmedabad: The recent decline in major benchmark indices Sensex and Nifty, which is measured by the price-I (PE) ratio, pushed below 5- and 10-, based on the last 12-maa (TTM) Is. Average of the year. The Sensex and Nifty are 11 and 12 percent below their all -time highest levels respectively.
The Sensex is currently trading at TTM PE of 22.2x, while its 5 and 10 years are 25.4x and 27.5x respectively. On the other hand, the Nifty 50 is currently trading at TTM PE of 21.7%. This is less than 23.9% and 26.7% of the average TTM PE of 5 and 10 years respectively.
According to market experts, the decline in PE of major benchmark indices Sensex and Nifty is largely due to weak results of the December 2024 quarter.
So far, the comments of companies declaring the results of the December quarter have been cautious. Expectations of low increase in income in the upcoming quarter are also keeping perception under control. There is also a need to monitor the government bond rewards. There is no special enthusiasm among investors. It would be better for investors to stay away from the market for at least one quarter.
The situation in the mid-cap and small-cap segment is also not very different. Nifty Midcap 100 and Nifty Smallcap 100 Index are trading at 37.1 and 26.6 PEs, slightly below their 5-year and 10-year PPE qualities, respectively. The decline in both these sections has been more intense than their large-cap counterparts.