another way to look at it
the 20 year historical average for the nifty pe is 17. the median 16. the max 29. the min 13
starting at 360 eps reported for the trailing 12 months (- 5 % year on year with a five year average of 9% a year) eps has to grow 17% (twice the 5 year average and a 4x swing from - 5%) to justify a nifty valuation of 7200 (present price) at the average multiple of 17
a reasonable expectation of 5 % eps growth implies earnings of 378 at a 17 multiple or a value of 6768 (- 5% from present prices)
no growth eps 360 at a 17 multiple values 6153 (-15 %)
another - 5 % year puts eps at 342 at 17 times values 5845 (roughly -20%)
and if multiples were to contract to 13 then nifty values under all ranges falls to 4400-5000 (a bomb blast from here)
the promise of reform and candidate brand values launched from nifty 6400 to which it would be reasonable to return
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