Nifty Capital Markets P/E at 43.0 as earnings rise 19%

The reading

Nifty Capital Markets closed at 5,181.15 on Friday, 9 October 2026, at a price-to-earnings ratio of 42.97. Its price-to-book ratio was 11.01, and its dividend yield as of 8 October was 0.67%.

These are NSE's end-of-day ratios, and the daily series is on the Nifty Capital Markets valuation page. A P/E of 43 is more than twice the market's, and a P/B of 11 is about four times the Nifty 50's 2.77. Neither is high for this index.

What is in it

The index holds 17 companies that earn their living from the market itself. The Tata Nifty Capital Markets Index Fund held them in these proportions on 30 September 2026:

Two stocks, BSE at 20.0% and MCX at 18.9%, are almost two-fifths of the index. The five fund houses are the second, third, fourth, sixth and seventh largest in the country, and between them managed 43.6% of the industry's average assets in April–June 2026, by our count of the largest fund houses. HDFC AMC, the listed company behind HDFC Mutual Fund, is the largest of them in the index at 10.4%.

On BSE's figures for 9 October, MCX trades at a P/E of 54.9, HDFC AMC at 32.9, Nippon Life India AMC at 40.9, CAMS at 34.0 and Angel One at 25.9.

A short record

NSE's P/E series for this index in our data holds one reading from 12 April 2023 and then an unbroken run from 13 September 2024. That is 514 sessions, a little over two years, so there is no five-year range to compare against.

151 of the 514 sessions closed at a lower P/E, which puts today at the 29th percentile. The single 2023 reading, 25.49, is the lowest figure in the series but sits 17 months before the next one.

The P/B is lower still against its record. At 11.01 it sits below a median of 12.60, and only 39 of 513 sessions with a P/B were lower: the 8th percentile. The low was 10.38 on 26 September 2025, the high 15.42 on 16 December 2024. P/B divided by P/E, a rough return on equity, is 25.6% today, against 25.7% a year ago.

Earnings did the work

The last column is the index divided by its P/E, a rough stand-in for earnings per index unit. Over the past year the index rose 17.6% while its P/E slipped 0.9%, so the earnings figure grew about 18.7%. Over two years the index is up 46.0% and the earnings figure about 61.9%, while the P/E fell from 47.66 to 42.97.

That is the opposite of a re-rating. The price has followed profits up, and the multiple has drifted down.

Against the Nifty 50

The index costs 2.23 times the Nifty 50 on earnings (42.97 against 19.27). Across 514 shared sessions the median multiple is 2.03, and 447 sessions had a lower one. The record, 2.42, came on 26 May 2026, the same day as the index's record close. A year ago the multiple was 1.95.

So the index is cheaper than usual on its own history but dearer than usual next to the market. The second reading is mostly about the Nifty 50: its P/E fell 13.5% over the year, from 22.27 to 19.27, while its earnings figure rose only 3.4%.

Today's level is 8.6% below the record close of 5,671.50 on 26 May. The 2026 low was 4,251.80 on 30 March, and the index has risen 21.9% since.

Where the funds sit

Passive funds track the index, among them the Tata index fund, the Motilal Oswal Nifty Capital Market Index Fund and the Groww Nifty Capital Markets ETF. Active financial-services funds in the sectoral and thematic category own some of these companies, but mostly alongside banks and insurers. The guide to banking and financial services funds explains that mix. For comparison, Nifty Financial Services Ex-Bank closed at a P/E of 19.75, and our Nifty Financial Services P/E post covers the wider sector.

What this does not tell you

These profits move with the market. Exchange fees, broking income and fund-house revenue rise with trading volumes and asset values. A P/E on strong earnings can look moderate, and the same price on weaker earnings would read much higher.

The record is short. Two years of P/E history cannot say what is normal for this index across a full cycle.

Two stocks carry the index. BSE and MCX together are 38.9% of it, so their results alone can move the ratio.

None of this is a recommendation to buy or sell anything.

Where to go from here

The guide to reading an index P/E explains what the ratio can and cannot say. For indices with a longer record, each ranked against its own history, see the cheapest and dearest NSE indices.