NIFTY PE Over-Valued

As we witness in Feb 2021 the NIFTY PE is Historically High. Following is the Color Legend based the Under-Valued(Green), Over-Valued (Red) months.

Any value above 25 is considered Over-valued.

Any value below 25 is considered Under-valued.

NIFTY PE Ratio by Year/Month

What you have to Infer?

Market is over-valued & it may go same in next few quarters too due to the Recovering Corona & Boosted Economy. One should sell those over-valued Largecaps on the Peak & New buys only under-valued ones.

Stay away from lossy companies as you will be burning the fingers later.

Note: Smallcap & Midcap sector have different Index and it is Moderately Valued.

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