BSE's Sensex Crosses 60,000: How The Financial Ratios Stack Up

The S&P BSE Sensex touched the 60,000-mark on Thursday, rising 25% since the beginning of the year.

A bronze bull statue stands at the entrance to the Bombay Stock Exchange building in Mumbai, India. (Photographer: Prashanth Vishwanathan /Bloomberg)

The Sensex crossed the 60,000-mark for the first time on Friday, rising 25% since the beginning of the year, backed by improving financials of the index's constituents. That boosted the benchmark's financial ratios.

Here's a look at how the bourse's key indicators have fared:

Price-To-Earnings

The S&P BSE Sensex's price-to-earnings ratio has fallen since the beginning of the year led by improved earnings of the index's components. The benchmark trades at 31 times its earnings compared with 33.5 times at the start of the year, according to BSE data. It rose to as high as 36.21 times in February.

Price-To-Book

The book of the Sensex has more or less remained stagnant in the last one year owing to a slowdown in capital investments by companies. The metric, however, is at its highest since January last year, at 3.8 times.

Dividend Yield

Dividend yield—or dividend as a percentage of market price—was the highest in March 2020, simply because the index had tumbled when the pandemic struck. According to BSE data, it's below 1 currently as the benchmark has been scaling new records.

Also Read: Sensex Tops 60,000: Investors Beyond Top Two States Flock To Stock Market

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WRITTEN BY
Sajeet Manghat
Sajeet Kesav Manghat is Executive Editor at NDTV Profit. He is a graduate i... more
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