GRAPHITI
THE BROADER MARKET’S
TUMULTUOUS JOURNEY AMID
WEAK MACROECONOMIC
DATA, CONSUMPTION
SLOWDOWN AND BAD
MONSOON COULD LEAD TO
A CRISIS OF CONFIDENCE
AMONG STOCK INVESTORS.
Graphic by Tanmoy Chakraborty
Research by Niti Kiran
THE BUZZ
The Sensex is hovering at
a five-year high P/E ratio
FPIs are turning
net sellers after
five months
Ju
ly
2
0
14
FPI Net Investment
(` '000cr)
OVER-VALUED
FACING
THE EXIT
30
25
20
15
10
5
A
W
O
B
B
L
Y
R
ID
E
56.3%
Share of BSE 500
stocks that are
trading below their
five-year median
price-to-earnings
(P/E) ratio
26%
The premium at
which the Sensex
is currently trading
compared to its
five-year median
P/E ratio
-4.
17.
21.
- 9
2.
-7.
34
31
Jan
28
Feb
29
Mar
30
Apr
31
May
28
Jun
19
Jul