Nifty 50 At 20,000: How Expensive Are Index Stocks
JSW Steel is the most-valued stock, trading at 47.80 times its earnings.
The NSE Nifty 50 is still trading below its historical valuations even as the benchmark index briefly crossed the 20,000 milestone to hit an all-time high on Monday.
The gauge is trading at 22.83 times its current earnings, a discount of 7.57% to its five-year average, according to data compiled by Bloomberg.
The Nifty hit 20,008.15 in intra-day trading before closing at 19,996.35, another life-time high.
Among its constituents, JSW Steel Ltd. is the most-valued stock, trading at 47.80 times its earnings, 196.54% higher than its five-year price-to-earnings ratio. Bharat Petroleum Corp. and NTPC Ltd. follow.
Tata Consultancy Services Ltd., Oil and Natural Gas Corp., Coal India Ltd., and Titan Co. are trading close to their respective historical valuations.
On the downside, pharma giants like Sun Pharmaceutical Industries Ltd. and Dr. Reddy's Laboratories Ltd. were among the index's least-valued stocks, with P/E ratios at 23.85% and 24.72% below their five-year averages, respectively. Pesticides and agrochemicals company UPL Ltd. was the least-valued stock of the index, with a P/E ratio 29.95% below its five-year average.
