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Nifty’s PE falls 20% from March high on new formula, mkt decline

Pehal News Team 0 Comments


The change in calculations have made Nifty’s valuations cheaper, however they’re nonetheless greater than the regional friends.

Synopsis

The change in February introduced that index PE ratio will probably be calculated by taking into account earnings, together with earnings and losses, reported by every index constituent within the trailing 4 quarters on a consolidated foundation efficient from March 31.

Mumbai: Valuation of India’s key benchmark has shrunk following the NSE’s transfer to alter the calculation methodology and the decline out there previously month. The Nifty’s Price to Earnings (PE) ratio — a preferred valuation measure — based mostly on 12-month earnings has declined practically 20 per cent from a March high of 41.60 to 33.5. The NSE determined to think about consolidated earnings to calculate PE ratio from March 31. This has resulted in Nifty’s

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ET Bureau

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