Nifty PE ratio, P/B, Dividend yield charts
1) Nifty PE, P/B, dividend yield (excel workbook)
2) 14 Years Nifty PE, P/B, dividend yield (plain chart)
3) 14 Years Nifty PE, P/B, dividend yield (analysis chart)
View latest Nifty PE, P/B, dividend yield on the NSE website
Nifty is a widely followed Indian stock market index comprising of the 50 largest publicly traded companies in India.
What is PE ratio?
PE ratio refers to price to earnings ratio. It is a widely used and simple ratio used to determine how cheap or expensive a stock/index is either historically or in the future (forward earnings), compared to its peers. More »
Life is like an out-of-the-money options contract.
The premium is high at the beginning of the contract (at birth) and inevitably reaches zero as we age and die.
The volatility (ups and downs in our life) will change the premium temporarily, but time decay (ageing) slowly but maturely overpowers it.
For some, at critical events in their life, the premium may rise, even more that what it was at birth.
Some people, then bet that the premium will continue to rise while others who are more pessimistic will look to short us.
At any point of time, there will always be individuals looking to short us while friends, family and even strangers continue to believe in us.
While the price of our options premium varies greatly as we live, we must pay more attention to the underlying because that is the one that actually is unaffected by time decay and truly represents the intrinsic value of our life’s option.
Image credit – Jo@net
Most liquid index and stock options on the NSE
I had done a little research of my own yesterday (17th April 2013) and reviewed the 140 odd stock options available on NSE (National Stock Exchange, India). I spend around 30 seconds looking at each one of them on the NSE website and tried to categorize them into Tiers based on how liquid they are. As the Tier number increases, the liquidity (number of contracts traded each day) goes down. For example, Tier 1 stock options are more liquid than Tier 3 stock options and so forth.
Most liquid index options on NSE
Nifty, Bank Nifty
Most liquid stock options on NSE
Tier 1 (>2000 Contracts/day – 5)
Infosys, SBI, ICICI Bank, Reliance Industries, DLF Ltd More »
What is the Money Market? An Introduction – Part 2 of 2
Certificate of deposit
Most of the confusion surrounding certificate of deposit comes from the fact that its called by various names in other countries. For example, in
- India it goes by the name of – Fixed deposit
- UK – Bond
- Australia, New Zealand – Term deposit
- USA – Certificate of deposit/ Time deposit.
Certificate of deposit is basically a “certificate” issued by banks. The certificate among other things mentions the interest which the bank pays on the deposit and the time period after which the deposit can be withdrawn (premature withdrawal usually warrants a penalty).
A typical transaction involves an individual going to the bank to deposit his money for a fixed period of time (say 3 years) at a fixed interest rate (say 1.450% APY – Annual Percentage Yield) and the bank in return gives him a certificate of deposit with all the details. More »