This is the October 2017 update for the State of Indian Stock and includes historical analysis and Heat Maps of Nifty 50 as well as Nifty 500’s key ratios, namely P/E, P/BV ratios and Dividend Yield.
Please remember that these numbers are averages of P/E, P/BV and Dividend Yield in each month. Neither Nifty 50 heat maps nor Nifty 500 heat maps show the maximum or the minimum values for each month. Also note that NSE publishes PE ratios based on standalone numbers and not consolidated numbers.
Caution – Never make any investment decision based on just one or two ‘average’ indicators (Why?) At most, treat these heat maps as broad indicators of market sentiments and a reference of market’s historical mood swings.
So here are the Nifty 50 Heat Maps…

Historical P/E Ratios – Nifty 50 (Monthly Average)

P/E Ratio (on last day of October 2017): 26.38
P/E Ratio (on last day of September 2017): 25.43
The 6-month trend of P/E has been as follows:
 Historical P/BV Ratios – Nifty 50 (Monthly Average)
P/BV Ratio (on last day of October 2017): 3.49
P/BV Ratio (on last day of September 2017): 3.35

Historical Dividend Yield – Nifty 50 (Monthly Average)

Dividend Yield (on last day of October 2017): 1.08%
Dividend Yield (on last day of September 2017): 1.17%
Now, to the historical analysis of Nifty 500 companies…
As the name suggests, Nifty 500 is made up of top 500 companies which represent about 95% of the free float market capitalization of the stocks listed on NSE (March 2017).
Nifty 50 on other hand is an index of 50 of the largest and most frequently traded stocks on NSE. These represent about 63% of the free float market capitalization of the NSE listed stocks (March 2017).
So obviously, Nifty 500 is comparatively a much broader index than Nifty 50.

Historical P/E Ratios – Nifty 500 (Monthly Average)

P/E Ratio (on last day of October 2017): 31.05
P/E Ratio (on last day of September 2017): 29.58

Historical P/BV Ratios – Nifty 500 (Monthly Average)

P/BV Ratio (on last day of October 2017): 3.34
P/BV Ratio (on last day of September 2017): 3.18

Historical Dividend Yield – Nifty 500 (Monthly Average)

Dividend Yield (on last day of October 2017): 0.94%
Dividend Yield (on last day of September 2017): 1.03%
 
You can read the last month’s update here. The State of Markets section has also been updated with new Nifty heat maps (link).

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