Three readings from Wednesday
The Nifty 500 closed at 23,559.20 on Wednesday, 26 August 2026, at a price-to-earnings ratio of 22.89. Its price-to-book ratio was 3.29 and its dividend yield 0.95%.
The Nifty Total Market, which adds smaller listed companies beyond the 500, closed at 13,312.15 at a P/E of 23.09, with a P/B of 3.30 and a yield of 0.92%.
The Nifty 50 closed at 24,207.75 at a P/E of 20.46, a P/B of 2.93 and a yield of 1.16%.
The daily series are on the Nifty 500 and Nifty Total Market valuation pages.
Against their own history
For the Nifty 500 and the Nifty 50 the comparisons start on 31 March 2021, when NSE moved to consolidated earnings, giving 1,334 sessions. Our Total Market series only starts on 14 October 2021, so its window is shorter: 1,200 sessions.
| Nifty 500 | Total Market | Nifty 50 | |
|---|---|---|---|
| P/E on 26 Aug 2026 | 22.89 | 23.09 | 20.46 |
| Lowest in window | 19.40 | 19.61 | 18.92 |
| Median in window | 24.00 | 23.80 | 22.2 |
| Highest in window | 36.56 | 29.68 | 33.61 |
| Sessions with a lower P/E | 28% | 33% | 10% |
- The Nifty 500's low was 19.40 and the Total Market's 19.61, both on 20 June 2022. The Nifty 500's high was 36.56 on 8 April 2021; the Total Market's 29.68 on 18 October 2021, near the start of its shorter record.
- On their own records, both broad indices are below their medians, but less far down than the Nifty 50, which sits at the edge of its cheapest tenth.
- P/B: the Nifty 500's 3.29 is near its low; only 6 sessions closed lower, and the low of 3.21 came on 23 March 2026. The Total Market's is similar: 11 sessions lower, low of 3.17 on the same day.
- Dividend yield: the Nifty 500's 0.95% is close to the bottom of its record. Only the 0.93% of 21 and 24 May 2021 was lower, and 1,314 sessions offered more. The Total Market's 0.92% is the lowest in its record.
A wider premium than usual
The Nifty 500 includes the Nifty 50, but most of its 500 members are smaller companies. On 26 August the Nifty 100 traded at a P/E of 20.32, the Midcap 150 at 30.00 and the Smallcap 250 at 34.02. The smaller companies pull the broad index's P/E above the Nifty 50's.
How far above has varied. Since March 2021 the Nifty 500's P/E has been between 1.02 times the Nifty 50's (20 June 2022) and 1.17 times (1 January 2025), with a median of 1.07. On 26 August it was 1.12 times, higher than on 1,117 of 1,334 sessions, about 84%.
The Total Market tells the same story: 1.13 times the Nifty 50, against a median of 1.07 over its window, and a wider gap than on 991 of 1,200 sessions.
So the broad market is a little below its own middle, and the Nifty 50 well below its own. The difference between them is near the wide end of its range.
The year so far: the broad market held up
| 31 Dec 2025 to 26 Aug 2026 | Index | P/E | Implied earnings |
|---|---|---|---|
| Nifty 500 | down 1.3% | down 6.4% | up 5.4% |
| Nifty Total Market | down 0.6% | down 6.0% | up 5.7% |
| Nifty 50 | down 7.4% | down 10.1% | up 3.0% |
The Nifty 50 has fallen more than five times as far as the Nifty 500 this year, and its earnings have grown more slowly. Over the full year from 26 August 2025, the Nifty 500 is up 3.5% with implied earnings up about 7.6%, while the Nifty 50 is down 2.0% with earnings up about 3.9%.
Neither broad index is at a record. Both set their highest closes on 26 September 2024: 24,496.90 for the Nifty 500, now 3.8% below, and 13,797.55 for the Total Market, 3.5% below.
The 2021 switch, for the record
On 31 March 2021 the Nifty 500's P/E went from 43.33 to 35.89 in a session, with the index down 0.6%, as NSE moved to consolidated earnings. Readings before that are on a different scale, which is why the comparisons above start there.
What this does not tell you
A wide premium is not a forecast. The gap between broad and large-cap valuations has been wider (in January 2025) and narrower (in mid-2022). It does not say which way it moves next.
An index P/E is a weighted average of very different companies. The broad index's 22.89 blends large caps near 20 with small caps near 34. Two funds with the same index can hold very different slices of it.
It is not your fund. A flexi-cap or multi-cap fund chooses its own mix of large, mid and small companies.
Where to go from here
For the large-cap index this month, see the August Nifty 50 P/E post, and for mid caps, the Midcap 150 in June.
Funds that spread across the whole market are in the flexi cap fund rankings. The guide to flexi-cap vs multi-cap funds explains how each splits its money by company size.
Frequently asked questions
What is the Nifty 500 P/E ratio in August 2026?
The Nifty 500 closed at a P/E of 22.89 on 26 August 2026, with the index at 23,559.20. Its price-to-book ratio was 3.29 and its dividend yield 0.95%. The Nifty Total Market closed at a P/E of 23.09 the same day.
Is the broad market more expensive than the Nifty 50?
Yes, and by more than usual. On 26 August 2026 the Nifty 500's P/E was 1.12 times the Nifty 50's 20.46. Since 31 March 2021 the median multiple is 1.07, and 1,117 of 1,334 sessions had a lower one. Against its own history, though, the Nifty 500's P/E is below its 24.00 median.
How has the Nifty 500 done compared with the Nifty 50 in 2026?
Much better. From 31 December 2025 to 26 August 2026 the Nifty 500 fell 1.3% and the Nifty Total Market 0.6%, while the Nifty 50 fell 7.4%. The earnings behind the Nifty 500 rose about 5.4% over the same months, against about 3.0% for the Nifty 50.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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