How is the mood determined?
The PE ratio tells about how high the market is valued for an earning of a rupee. The higher the number the costlier is the stocks exchanged, remember stocks are not sold they are exchanged. In March, the initiation of the spread the market had a PE value of 25.3. This means you pay ₹25 for a company to earn ₹1. But people never knew that the market was about detour into the subway.
The number was held high for that week. After two weeks of high, the number started to drop. The market was shut till the mid-day as it was a 10% decline ( market jargon known as a correction).
Time passing mid-April, people somehow gathered confidence and opened fresh positions (buying). Other external factors too contributed to the rise but we will limit to known clamor, the audience is tender as of now. As of June 22, the market regained to the same 25 (25.6).
The number now is nearing 30, 29.87 as of now. There are chances increase in the number because of various factors and the major 2 stimuli will be discussed in finnomy.
Comments
Post a Comment