“Being still and doing nothing are two completely different things.” Jackie Chan Last Friday markets were in free fall zone, falling 1.9% on a single day or over 15% in last six months. Is this culmination of the market correction going on for over last few months or beginning of a new wave of further corrections? Usually price to earnings or PE, price to book value or PB and market cap to GDP are tracked to test if markets are overpriced or fairly priced or undervalued. Let’s try to decode and analyze them to see where market stands today. Indicator Sep-24 Feb-25 Rise / Decline Nifty 26216 22124 -15.61% EPS 1063 1125 5.83% PE 24.66 19.67 -20.26% PB 4.27 3.29 -22.95% Market Cap to GDP 139.36 110 -21.07% Source: www.trendlyne.com...
“You miss 100 percent of the shots you don't take." Wayne Gretzky, NHL Hall of Famer Markets are down by over 8% from their peaks. Many reasons can be attributed to that like geo-political & economical concerns, domestic political/social events, inflation, interest rates, weather etc. Are these concerns over or are they deepening further. Honestly no one can answer this question, you can only guesstimate them based on your experience and understanding. Israel has retaliated to Iran’s attack, how is Iran going to reply this? How the US economic policies will shape up after elections that are just a couple of weeks away. Domestically too train incidents over last couple of months and bomb hoax in flights over two weeks now, rising insurgency post J&K elections, bomb explosion in Delhi this week definitely concerns us. And kind of political slugfest we are witnessing now-a-days, don’t comfort us of a good future at times. FIIs also withdrew 1.07 lakhs crores ove...