ICICI equity and debt valuation index - May 2023

[Meher_Smaran]

ICICI Prudential Mutual fund shares an interesting valuation index every month for both equity and debt markets. You can find the charts below of the same:

Equity Valuation Index

This index is calculated by assigning equal weights to Price-to-Earnings (PE), Price-to-Book (PB), G-Sec*PE and Market Cap to GDP ratio. Data as on May 31, 2023.

Analysis of Equity valuation Index

Debt Valuation Index

Debt Valuation Index considers WPI, CPI, Sensex returns, Gold returns and Real estate returns over G-Sec yield, Current Account Balance, Fiscal Balance, Credit Growth and Crude Oil Movement for calculation. Data as on May 31, 2023.

[sparsawar]

Thanks for the post, I was also noticing this in ICICI Factsheets and monthly market outlook. However I couldn’t calculate this valuation index. Mainly stuck at finding value for G-Sec*PE. Any idea how to replicate this? Thanks in advance