Bottomline | Market: Expect the unexpected [Video]

The eternal truth for anyone who has been in the market long enough is to know that no one knows where it is headed. Once you digest that truth, investing becomes a lot easier. So, let’s shut out the noise and see where we are perched today. We ran a basic check on historical valuations to get a sense of where we are and where we could go. Here goes.

HEAVYWEIGHTS: NOT FROTHY

We tracked valuations for the BSE-Sensex index using price-to-book value, as historical earnings can be less reliable, to find that we are currently at 3.7x in March and at 3.5x for the fiscal FY2024. While this isn’t cheap by any standards, the Sensex has traded nearly such annual valuations in 10 years since FY1999. In fact, in the three fiscals from FY2006 to FY2008, the Sensex traded well above 4x—5.5x in FY2008. Even in FY2010 and FY2011, the Sensex traded …