2019-08-11_Business_Today

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.

7. 9
   2.

-7.

34

31

Jan

28

Feb

29

Mar

30

Apr

31

May

28

Jun

19

Jul