Nifty PE FOR 1 YEAR - Current value 18.5

Nifty PE FOR 1 YEAR - Current value 18.5

• NIFTY P/E is the best indicator which helps long term investors to decide when to enter and when to exit.
• For past 1 Year Nifty has Fallen from 24 to 18.5. This shows the weakness in Market.
• Long term can start investing in staggered manner after P/E goes below 18. P/E generally can go till 15 and Bouce back from there Sharply.
• As India is still in Growth Phase, we can see the stocks booming.
• Current fall is because of Global factor and US probably going into recession again.

Bank Nifty PE Chart 2013

Bank Nifty PE Chart 2013

• Price to Earning ratio is an important indicator. It will show you how stretched are the valuations and indication on when to exit the market.
• Curent PE as of Nov is 18.78 which is close to upper limit and has reached this level after April 2011.So please be cautious at these high levels

Below is the 2013 Chart for Bank Nifty