Earnings yield of BSE 500 firms at 11-year low

Earnings spread for foreign investors down to 10-year low of 1.1 per cent, from 2 per cent at the beginning of the year and record high of nearly 5 per cent in 2013

The mismatch between corporate earnings and stock prices has widened on Dalal Street, with the earnings yield for India’s top listed companies now down to a decadal low of 3.5 per cent. The figure was 4.5 per cent at the start of 2007 and four per cent a year before. The current yield is even lower than at the end of December 2007, a week before the great market fall of 2008.
 
This analysis is based on the latest earnings and market capitalisation of BSE 500 index companies, which account for 90 per cent of the combined market value