Skip to main content

Expensive stocks in Nifty

The Indian Stock Markets have run up sharply from 8k to 12k, in a very short span of time. So too have many top index stocks. At current market prices, most frontline stocks are no longer cheaper and many are in overheated territory.

The fair value of a stock is usually measured by : price-to-book value (P/BV ratio), price-to-earnings multiple (P/E ratio) and dividend yield (in percentage). A long-term investor would prefer a company with a lower p/e multiple and lower P/BV ratio.The key to find out whether it is cheap or expensive is to compare the current valuations with historical averages.

So, when comparing current ratios with historical averages of last quarters, most of the top index heavy weights are running ahead of fundamentals. The top 5 expensive stocks in Nifty right now are Reliance Industries, Tata Comm, BHEL, NTPC, HDFC Bank.




These stocks are fundamentally good stocks but running high now. So one can buy these stocks around their fair values, based on their historical averages.

Buy low, sell high !

Popular posts from this blog

Historical Sensex Returns Updated - 2024

Historically Sensex has given returns of about 15% per year, despite volatility and price fluctuations of about -20% to +60%. The following table shows S&P BSE Sensex historical data - start  & close values and the yearly returns of the sensex from 2000 to 2024. So far during the year the   index has hit an all-time high of  75,124   and despite markets hitting all time highs not all stocks make all-time highs. There are many stocks still below their highs. Stocks like HDFC Bank, ITC, Asian paints are still well below their highs and some of them have given low returns over last 3-5 years. Individual or Retail investors can achieve consistent returns through investing via mutual funds , whether it be active or passive. Chasing returns from individual stocks is futile. Be a wise investor !

Mutual Funds - How to modify KYC or do rekyc?

Last year SEBI issued a circular effective April 1, 2024 regarding KYC norms for the securities market. This has created a lot of confusion among investors and intermediaries, whether who has to do rekyc and who need not? First check your KYC status from CVL KRA . If the 2nd column says KYC VALIDATED, then you are good to go - no action required. You can invest and redeem all the funds. If it says registered, you can invest in existing Fund houses. You have do rekyc to invest in new fund houses/ schemes. If it is on hold, you have to do rekyc.  You can do rekyc completely online from the AMC's websites, links of which are given below: Bandhan Mutual Fund - Bandhan Canara Robeco Mutual Fund - Canararobeco DSP AMC - Dsp Franklin Templeton Asset Management Franklintempletonindia HDFC Mutual Fund Hdfc ICICI Prudential Mutual Fund Icicipruamc Kotak Mahindra Mutual Fund  Kotak SBI Mutual Fund  Sbi Investors having KYC status of  'Registered' or 'On Hold' can complete thei...