Nifty 50 P/E at 21.06 to start the second half

The second half opens

The Nifty 50 closed at 24,430.35 on Monday, 6 July 2026, at a price-to-earnings ratio of 21.06. Its price-to-book ratio was 3.19 and its dividend yield 1.20%.

The index is 7.2% below its record close of 26,328.55 from 2 January. The full daily history is on our Nifty P/E ratio page.

Since early June

In the June post the index stood at 23,416.55 at a P/E of 20.21. Since then:

• The index rose 4.3%.
• The P/E rose 4.2%.
• Dividing one by the other, the earnings behind the index rose about 0.1%.

After a month in which earnings did some of the work, this one was price again.

The route was not straight. The P/E dipped under 20 twice more, closing at 19.96 on 8 June and 19.98 on 11 June. On 11 June the P/B was 3.05, matching the 30 March low. From that close of 23,161.60 the index rose 5.5% to Monday's level.

The first half in one table

Over the six months:

• The index fell 8.7%.
• The P/E fell 9.5%.
• Dividing one by the other, the earnings behind the index rose about 1.0%.

The book value behind the index rose about 3.9% over the same months, which is why the P/B fell further than the P/E.

March did nearly all of the damage. The index lost 11.3% in that month alone and has recovered part of it since. Since 6 April the P/E has closed between 19.96 and 21.45, all of it within the cheapest 30% of its five-year range.

Where 21.06 sits

Since 31 March 2021, when NSE moved the P/E to consolidated earnings, there have been 1,297 sessions. Why the comparison starts there is in the first post of this series.

• P/E: 279 sessions closed lower than 21.06, about 22%. The median is 22.25.
• P/B: 37 sessions closed below 3.19, under 3%. The low is 3.05, reached on 30 March and again on 11 June.
• Dividend yield: 1.20%, below its 1.28% median; 967 sessions offered more.

A year ago, on 4 July 2025, the index closed at 25,461.00 at a P/E of 22.92. The price is 4.0% lower since then, the P/E 8.1% lower, and the implied earnings about 4.4% higher.

So the twelve-month picture is a little better than the six-month one. Most of the earnings growth over the year came in the second half of 2025; this year the profits behind the index have barely grown.

What this does not tell you

A first half is not a forecast for the second. The P/E sitting low for three months says nothing about the next three.

The earnings figure is trailing. It updates as companies report, and a step in it can move the ratio on a quiet day.

It is the index, not your fund. Large-cap funds own their own selection at their own weights.

Where to go from here

The first-half 2026 market recap puts these numbers alongside the rest of the market. To see how other NSE indices stood at the end of June, see the cheapest and dearest NSE indices.

The guide on how to read an index P/E ratio explains the arithmetic used here.