The ladder
NSE publishes a P/E, a P/B and a dividend yield for each of its indices. On 2 November 2026, the 18 broad and sector indices below ranged from a P/E of 7.23 to 43.47, a sixfold spread. Sorted from lowest to highest:
| Index | P/E | Earnings yield | P/B | Dividend yield |
|---|---|---|---|---|
| Nifty PSU Bank | 7.23 | 13.8% | 1.16 | 2.50% |
| Nifty Bank | 12.23 | 8.2% | 1.66 | 1.14% |
| Nifty Energy | 13.55 | 7.4% | 1.99 | 2.46% |
| Nifty Financial Services | 14.82 | 6.7% | 2.30 | 1.02% |
| Nifty Metal | 15.05 | 6.6% | 2.59 | 1.75% |
| Nifty Next 50 | 16.84 | 5.9% | 3.31 | 1.49% |
| Nifty 100 | 18.90 | 5.3% | 2.95 | 1.41% |
| Nifty 50 | 19.43 | 5.1% | 2.88 | 1.39% |
| Nifty IT | 19.88 | 5.0% | 5.68 | 2.86% |
| Nifty 500 | 21.07 | 4.7% | 3.12 | 1.26% |
| Nifty Midcap 100 | 26.18 | 3.8% | 3.69 | 0.96% |
| Nifty Midcap 150 | 26.65 | 3.8% | 3.73 | 1.02% |
| Nifty Auto | 29.45 | 3.4% | 4.02 | 1.13% |
| Nifty FMCG | 30.17 | 3.3% | 7.30 | 2.66% |
| Nifty Smallcap 250 | 31.35 | 3.2% | 3.27 | 0.77% |
| Nifty Smallcap 100 | 33.37 | 3.0% | 3.61 | 0.66% |
| Nifty Realty | 34.09 | 2.9% | 3.59 | 0.51% |
| Nifty Pharma | 43.47 | 2.3% | 5.10 | 0.55% |
Earnings yield is 100 divided by the P/E.
What stands out
The broad market sits in the middle. The Nifty 50 (19.43) and Nifty 500 (21.07) are in the middle of the table. Moving down the market-cap ladder, the multiple climbs: Nifty 100 at 18.9, Midcap 100 at 26.18, Smallcap 100 at 33.37. Smaller companies are priced at higher multiples of reported earnings.
Banks are cheap on P/E, but not uniformly. Nifty PSU Bank at 7.23 is the lowest of the 18 and carries a 2.50% dividend yield. Nifty Bank at 12.23 and Financial Services at 14.82 follow. All three sit well below the Nifty 50's 19.43, with a P/B of 1.16 to 2.30.
The same P/E can sit beside very different P/B. Nifty IT (19.88) is close to the Nifty 50 (19.43) on P/E, but its P/B is 5.68 against 2.88, with a 2.86% dividend yield. Nifty FMCG has a P/B of 7.30, the highest in the table, and a 2.66% yield. A high P/B with a modest P/E is typical of businesses that earn a lot on a small book of assets.
Pharma is the outlier at the top. At 43.47 Nifty Pharma's multiple is more than double the Nifty 50's, with a dividend yield of just 0.55%. A high P/E can arise because earnings are temporarily low, or because the market is paying for growth; the number does not say which.
Dividend yield: where the cash is
Reading the same table by dividend yield, the top five are Nifty IT (2.86%), FMCG (2.66%), PSU Bank (2.50%), Energy (2.46%) and Metal (1.75%). The bottom is Realty (0.51%), Pharma (0.55%) and Smallcap 100 (0.66%). The site tracks the full list in NSE indices with the highest dividend yield.
Limits of this table
- Trailing earnings. P/E here uses reported earnings, so a sector coming off a bad stretch looks expensive, and one at a peak looks cheap.
- Different structures. Banks are valued against book value more often than against earnings, which is why P/B matters for them.
- A point in time. These are 2 November 2026 readings. The Nifty 50's own P/E, for instance, was 22.92 at the start of the year; see the Nifty 50 at 11% below its January close.
- Index, not fund. A sector fund will differ from its index in what it holds and what it charges.
Using it
A ladder like this is a way to see how different parts of the market are priced relative to each other, which is helpful when thinking about concentration. If you hold a sector or thematic fund, checking the P/E of its index is one way to understand what you are paying for. For a view that ties valuations to history, the Nifty P/E study shows how much a starting multiple has told investors. Fund-level holdings and sector weights are available on each fund's page, and funds can be filtered on the screener.
NSE index valuation ratios as of 2 November 2026. Not investment advice.
Frequently asked questions
What does an index P/E measure?
It divides the index's price by the earnings of its constituents. A high P/E means investors pay more per rupee of reported earnings, which can reflect expected growth, depressed earnings, or both.
What is earnings yield?
It is the inverse of P/E: 100 divided by the P/E. A P/E of 20 corresponds to a 5% earnings yield. It is a way of reading the same number, not a separate forecast.
Is a low P/E a reason to buy a sector?
Not on its own. Banks and metals tend to trade at lower multiples than pharma or consumer companies for structural reasons. The table describes where valuations stand, not what to do.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
Nifty IT yields 3.6%, more than twice the Nifty 50
On 19 October 2026 the Nifty 50 yielded 1.50%. Among 187 NSE indices, 145 reported a yield; the median was 1.14% and the highest, outside REITs, 5.43%.
Nine newer NSE sector indices: price and P/E since June
From 15 June to 9 October 2026, Nifty Retail rose 7.7% and Nifty Power fell 13.4%. P/E ranges from 15 (Telecom) to 209 (Retail). Nine sector indices compared.
Railways PSU P/E at 19.6: price down 41%, earnings flat
Nifty India Railways PSU closed at a P/E of 19.64 on 9 October 2026, 40.8% below its record close, with the earnings behind it where they were in December 2024.