Index | Current PE | PB | Div Yield |
|——————–|————|——|———–|
| *Nifty 50* | *19.19* | 2.75 | 1.23% |
| *Sensex* | *~19.09*| — | — |
| *Nifty Bank* | *12.91* | 1.64 | 0.73% |
| *Nifty Next 50* | 18.08 | 3.31 | 1.06% |
| *Nifty 100* | ~18.97–19.14 | ~2.84–2.87 | ~1.19–1.20% |
| *Nifty Midcap 50| **29.80* | 3.65 | 0.68% |
| *Nifty Midcap 100*| 27.70 | 3.73 | 0.65% |
| *Nifty Midcap 150*| ~28.10 | ~3.79| ~0.72% |
| *Nifty Smallcap 100*| 37.37–37.71 | ~3.69–3.73 | ~0.53–0.55% |
| *Nifty IT* | 17.80 | 4.96 | 2.83% |
| *Nifty Financial Services* | 15.05 | 2.27 | 1.01% |
Sources: NSE Indices / Flash Finance / IndexPE / Downstox (end-of-day figures). Slight variations across sites are normal due to timing or minor calculation differences. Forward PE for Nifty 50 is lower (around 17.4x in recent commentary).
### Historical Context – Past 10 Years (and longer)
*Nifty 50 PE trends (key reference points):*
– *10-year median / average*: ~23.2–23.3 (some sources show average closer to 24–24.8 depending on exact window and standalone vs consolidated).
– *5-year median*: ~21.9–22.0.
– *Full history (longer-term) median*: ~20.9–21.3.
– Current 19.19 is *below* the 10-year, 5-year, 3-year, and 1-year medians (typically 8–18% cheaper than these benchmarks). It sits near the bottom of the post-April 2021 consolidated-earnings era (0th–low single-digit percentile in many readings) and is among the lowest levels in the last decade outside of deep stress periods.
*Notable historical range for Nifty 50 (approximate):*
– 10-year low: ~17.15 (March 2020 COVID trough).
– Highs: ~39–42 (early 2021 post-COVID rebound peak on mixed basis); year-end peaks often 26–28 in 2017–2019.
– Year-end examples (approximate, mixing bases where noted): 2016 ~21.5–22, 2017 ~26–27, 2018 ~26, 2019 ~28, 2020 ~37–38, 2021 ~24, 2022 ~22, 2023 ~23, 2024 ~22, 2025 ~23, 2026 YTD low ~19.2.
*Note on methodology*: NSE switched index PE calculation from standalone to consolidated earnings around end-March 2021. This lowered reported PE levels (often by several points) for the same prices/earnings. Pre-2021 comparisons require caution; post-2021 data is more consistent for recent analysis.
*Nifty Bank*:
– Current 12.91 is well below its 5-year median (~16) and 10-year median (~22–23). It ranks in the lower percentiles of recent history and is viewed as moderately undervalued on a historical basis.
*Midcap / Smallcap*:
– Midcaps (e.g., Midcap 50 at ~29.8) are near or modestly below recent 5-year medians (~31) but still elevated vs longer-term history (10-year medians often higher, full history lower). Smallcaps remain richer (high 30s).
### Analysis vs Past 10 Years
– *Nifty 50 / large-caps are relatively attractive*: Trading ~15–18% below the 10-year median and at multi-year lows on a consolidated basis. Valuations have compressed significantly from the 21–24x range common in 2023–2025 and the much higher post-COVID peaks. Recent commentary notes Nifty near post-Covid valuation lows on a forward basis as well, with the multiple contraction driving much of the recent price weakness while earnings continued (more modestly) to grow.
– This is *not* extreme bargain territory like March 2020 (~17) or 2008/2011 lows, but it is clearly in the cheaper zone of the last decade. Historically, buying Nifty when PE is in the low-20s or below (especially relative to its own median) has been associated with better subsequent medium-to-long-term returns, though past performance is no guarantee.
– *Banking is cheaper*: Nifty Bank at ~13x stands out as one of the more undervalued major segments versus its own history.
– *Mid/small-caps are less compelling on pure PE*: Still elevated versus long-term averages even after some cooling, though recent relative performance and earnings growth have been stronger in parts of this universe.
– *Overall market context*: Large-cap valuations have reset lower amid broader market pressure (Nifty down significantly from peaks). Earnings growth remains a key swing factor—sustained double-digit growth would support re-rating from these levels, while any slowdown would keep multiples under pressure. Global factors, interest rates, and domestic flows also influence where PE settles.
*Bottom line*: Nifty 50 and Sensex PE levels look reasonable to moderately undervalued versus the past 10 years’ norms (especially the 10-year median near 23+). Banking looks particularly attractive on this metric. Mid- and small-caps are closer to fair or still somewhat rich. PE is only one lens—pair it with earnings growth trajectory, PB, dividend yield, and macro conditions for a fuller view. Data is as of early October 2026 and can shift daily with prices and quarterly earnings updates.