Nifty PE crosses 24|A statistically informed entry-exit model!

Investing Strategies
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There’s a nice report by ICICI direct (Title: DissectingtheNiftyPE, Date: 15th Jan 2021) which comments on the current valuation of the market. According to this report:

  1. Q1FY21 and Q2FY21 wherein earnings of corporate India were completely
    washed out. Therefore TTM PE doesn’t gives a correct picture of market valuation.
  2. Nifty costituents have changed a lot in last decade with FMCG, Financials (private banks), IT and Pharma having weightage increased from 29% in 2009 to 70% 2020.etc

Further, (regarding forward estimations) according to this report NIFTY FY20 EPS stood at 440 and NIFTY FY23E EPS is 740 ie 18.7% CAGR.

I hope, this gives a clear idea of where we are standing at present and what’s market looking upto.

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