The Nifty's price-to-book ratio has slid below three for the first time in six years, showcasing the banking sector's struggles alongside rising book values. With banks and financial services playing a crucial role in the Nifty's composition, the recent consolidation of financials has notably influenced valuation metrics. It is now essential for investors to prioritize earnings growth and future profitability projections.
Listen to this article in summarized format
Nifty's one-year forward P/B is now below 2.96 times, compared with its five-year average of 3.18 times and 10-year average of 2.99 times.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
Bigger or Better: BEL’s biggest shareholder is also its biggest customer – and its rule-maker. Final part
Train station to rocket propellants, a Nagpur firm’s INR21k-cr journey
Are patients paying the price for India’s PE-led healthcare boom?
The Nifty doesn't predict India. It records it
Power shift, a déjà vu: Air India could be new CEO’s toughest flight yet
ET Prime special series: Bigger or Better? Bharat Electronics’ 2013 to 2026 journey – Part 2
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Connect with an ETPrime expert for personalized support and guidance
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
Get daily trade ideas from SEBI-registered research analysts.
Grow your wealth with stock ideas & sectoral trends.
All-in-one stock research with Stock Score, peer comparison & key signals.
Get to know where the market bulls are investing to identify the right stocks.
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
Read the PDF version of ET newspaper. Download & access it offline anytime.
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Manage your money efficiently with this weekly money management guide.
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Explore the In-depth explanation of complex topics for everyday life decisions.
Get fitter with daily health insights committed to your well-being.
Manage your wealth better with in-depth insights & updates on finance.
Stay globally informed with exclusive story from New York Times.
Stream new documentaries from all across the world every day.
