CAPE Ratio of India’s NIFTY 50 Index 1999 – 2019

The current CAPE (Shiller PE) ratio of India’s NIFTY 50 stock index is 27.49 (12/31/2019). The 20 year historical average ratio is 22.71. A ratio higher than the historical average might indicate that India’s stock market is currently overvalued. The price-earnings ratio (TTM) is 28.30.

[Nifty 50 Index] – P/E (TTM) & CAPE Ratio

For comprehensive historical valuation data, subscribe for the Global Equity Valuations Researcher Dataset by Siblis Research that provides current and historical P/E (TTM) ratios, forward P/E ratios, CAPE ratios, dividend yields, market cap to GNI ratios, sector breakdowns and long-term interest rates of the largest economies and stock markets in the world. Check a sample dataset from here.

NIFTY 50 stock index

NIFTY 50 consists of fifty major companies. listed on the National Stock Exchange of India It is considered as a benchmark index for India’s equity market. The index is free float market cap weighted, just like the S&P 500. The largest sector of NIFTY 50 is Financial Services, followed by Information Technology. The three largest components are HDFC Bank, Housing Development Finance Corp and ITC. The index was launched in April 1996.

India CAPE ratio Nifty 50 Shiller PE
There exists a negative correlation between the historical CAPE ratio of the index and forward returns. This would suggests that Shiller PE could be used to evaluate the valuation level of India’s stock market. Note that the axis of the forward return is reversed.

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