May 16, 2004

Political uncertainity and stock market

The sudden uncertainity has created a buying situation in the stock market. At 14.5 PE the market has started looking attractive.

For fundamental investors, the performance of the companies which continues to be good would matter more in the long term.

Any further drops should be better from buyer's perspective

2 comments:

Vidyanshu said...

Hi Rohit,

A basic question. How do you calculate the PE of the market. Is it the index PE (all the index stocks PE averaged?)

Regards.

Rohit Chauhan said...

Hi vidyanshu

you can find the market PE from the NSE website. i think, though not sure that the PE must the wieghted average of the PE of each index stock (wieghts being equal to weights of the stock in the index)

regards
rohit