INVEST IN SENSEX NOW : CRITERIA OF VALUE INVESTING?

The last one year graph, near the Sensex and Nifty below, shows that this index of the market has been very variable during this time interval.

 Both of them had proven new heights in 2018 and after some fall, it touched the surface even last month. But along with this variability remained and there was a lot of decline due to the reasons mentioned above.

 So what should a common investor do in this market environment: buy new, sell some part or stay invested?
INVEST IN SENSEX NOW : CRITERIA OF VALUE INVESTING?
INVEST IN SENSEX NOW : CRITERIA OF VALUE INVESTING?
In the country's equity market last week, the US-China Trade War went after being more matured in a more mature way.

Surprisingly, India had reflected global markets since the beginning of this year. Therefore, regardless of the results of the election, in addition to the one-day reaction, the market will continue to show the mirror of global financial markets going forward.

Being this scenario, there is no point in guessing who will come to power because after the results of next week's election, the market will continue its course reflecting the global scenario.

Throughout the world, foreigners have sold stock in related countries and the Indian market has faced the same fate. It reflects global change in risk appetite.

 However,

the decline in India in May has nothing to do with the volatility of the number of seats, as political analysts have anticipated.

WHAT IS THE CRITERIA OF VALUE INVESTING?

Here we will take three main parameters of evaluation, which are put on their website everyday by NSE and BSE. This is price-income ratio (P / E), price-book value ratio (P / B) and dividend yield percentage.
IndexP / EP / BDividend yield percentage
Index ( Sensex)27.832.881.24
Nifty ( NIFTY)28.443.651.15
This latest criterion, before the 2008 earthquake, was far below the market when it was the highest, that is, the market is not very overvalued due to good growth in earnings. This means that it will not be worth the sale of the market on this surface, but it is not right to make new purchases in many companies (companies) which have this criteria too.

CONCLUSION

From the facts explained in this article, we feel that it remains invested in this market. It is not just the reason that Sensex and Nifty are not very expensive yet, but it is also true that the second index which shows the small-cap and mid-cap is not fast New opportunities for investment can be found and found there.


One easy advice is that when you do not understand what to do, always stay invested and make some investments every month (which is called cost estimate) by discipline, this gives you average return in market fluctuations.

 Will receive. If you are a mutual fund investor then keep your SIP running and do not worry about the market or the index because the market always goes up in the long run.

thanks for the time . 

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