BSE SENSEX and Indices Ratios – are they forming B.U.B.B.L.E. or what they are implying ???

IF YOU LIKE THIS ARTICLE DO SHARE AND ALSO COMMENT FOR ANY OTHER  VALUABLE SUGGESTION

Lets Analyse What Sensex and other Major Indices are telling us . Are we in Bubble Zone ready to burst or is the steam still left more to go . which sectors are looking Hot and which are Dumb Sectors. If we analyse with Past 20 years data we could find out many answers. Just simple Maths and common application needed , no need of hard  core research. Since People in the market in general terms were talking market is overbought – overbought from 9200 levels and they refused to buy and staying away and while our DII investors are buying hardcore and markets now at 9800 and still they are buying . How come ?? the question needs to be answered and after just making an excel sheet of how the Indices are behaving with PE x PB ratio we could find out whether this sector to be invested or should profit be booked, It simple ratio Which most Fundamental Investor apply to find the value of stock (cheap/Expensive).

  • lets See First how yearly SENSEX PE x PB ratio have done from 1998-1999 till now

 (to Zoom Click image or download image )

 

  • Lets Now analyse how Investor Invest at these ratios (Smart, FII, DII, HNI and Retail)

(to Zoom Click image or download image )

 

  • Now Lets See How Markets Gives Indication of Forming Bubble before Crashing which Major Retail  Investor Ignore or Fail to see – Lets Analyse 2007-2008 CRASH

(to Zoom Click image or download image )

  • Now Lets see Currently which Sectors are in Bubble Zone and Which are in Investment Zone as on 11.07.2017 as per the BSE Indices ratios 

(to Zoom Click image or download image )

 

  • CONCLUSION

(to Zoom Click image or download image )

 

 

  • These are just my views and I am Not any Big Shot Analyst or Research Analyst. I have Learn from Markets from 2005 and am still learning. I follow such rules and have avoided crashes till now with God’s Grace and Studies like this. As per my funda Study a little daily whether it be Technical or Fundamental and google it you will get more options how to learn . Just apply basic knowledge before investing in a company stock as after all Stock What you buy is Money what you earned with your perspiration.
  • After Narendra Modiji became PM there has been lots of improvement and vigilance in punishing fraudsters and Chor Promoters being made to pay the loans and all kinds of rebalancing the economy but still stay focussed on what you buy and please ignore Market TIPS/ Gossips / Rumours to earn short-term money.