Categories Chart Time spent by Sensex at various P/E levels Post author By Raoji Post date September 7, 2015 4 Comments on Time spent by Sensex at various P/E levels Source:Prashanth Share this:FacebookLinkedInTwitterWhatsAppEmail Tags Sensex ← It’s OK → Ramesh Damani on the markets 4 replies on “Time spent by Sensex at various P/E levels” Hi. Pls explain the chart. The chart shows the % of time the index spends at a particular P/E level Define X axis. Days/Weeks/Months … For how many years was this chart plotted? Last 1 year? 10 years? @Vetti, You are approaching the chart from a “market timing” perspective. I think you would like to know “how much time till the next correction/crash”. But think of this chart as a measure of time SENSEX spends at a particular PE level. So it only spends 2% of the time at 24x PE levels. So if you take 100 randomly selected days only 2 days you will find SENSEX at 24x levels. This should give an indication of how overbought or oversold SENSEX is (it is at overbought levels) Hope it helps! Thanks Soham Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Notify me of follow-up comments by email. Notify me of new posts by email.