SENSEX is 18% below SENSEX@MRP. What should you do?
Sensex@MRP gives you an indication of whether the Sensex is fairly valued or whether irrationality is driving the markets. It is the intrinsic value of Sensex determined primarily by the earnings of the Sensex companies. So, the logic here is, if Sensex goes above Sensex@MRP, it signals that the market is moving from being rational to being irrational. It means you have to become cautious because if it continues to rise further, this rise is not justified by increase in earnings; it would thus be time to start selling off.
The Indian stock market has shown extreme volatility, with rupee witnessing one of the historical low levels. Falling GDP growth, rising inflation, rupee depreciation and widening current account deficit, all mirror the uncertainty prevalent in the market.
Economic slowdown and policy paralysis is plaguing Indian economy with its spillover effect seen across the industry. Rupee's free fall has left us all aghast.
In this backdrop, let's have a look at the performance of SENSEX 30 companies. Who has outperformed the market? Who has struggled? And who provides the best investment opportunities? In this market, what should you do as an investor?
Click here to read the report on Sensex@MRP
What is MRP?
It is the maximum price that you should be willing to pay for a stock today. It indicates the intrinsic value of a stock.
What is Sensex@MRP?
Sensex@MRPis a tool which gives you clear BUY and SELL signals based on fundamentals thus making investing more profitable and not a game of mere chance. It helps you understand whether the market is fairly valued or whether irrationality is driving the markets.