Nifty IT P/E at 17.8: below the Nifty 50

The number

Nifty IT closed at 28,304.70 on 1 October 2026, at a price-to-earnings ratio of 17.80. Its price-to-book ratio was 4.96 and its dividend yield 2.83%.

These are NSE's published end-of-day figures. The daily series is on the Nifty IT valuation page. Our July post found the P/E at 18.68 and our March post at 21.08; this one updates both.

Against its own record

Every comparison starts on 31 March 2021, when NSE moved to consolidated earnings. That gives 1,359 trading sessions.

• P/E: only 5 sessions closed lower than 17.80, and all five are recent: 30 June and 1 and 2 July 2026, then 29 and 30 September. The low, 16.91, came on 1 July 2026. The high was 39.58 on 4 January 2022.
• P/B: 14 sessions closed lower than 4.96.
• Dividend yield: on 279 sessions the yield was higher than 2.83%, so about one session in five. The index pays more than its own median.

On every measure the index sits at the cheap end of its own five-year record.

A year of falling prices and rising profits

On 1 October 2025 Nifty IT closed at 33,905.20 at a P/E of 24.47.

• The index is down 16.5% over the year.
• The P/E is down 27.3%.
• Dividing price by P/E, the earnings behind the index are up about 14.8%.

So the ratio fell by more than the price because profits grew while the price fell. Since 21 July, the date of our last post, the index is 2.3% lower and the implied earnings about 2.5% higher.

The index set its record close of 45,995.80 on 13 December 2024 and is now 38.5% below it. Since the end of 2025 it has lost 25.3%.

The path through the third quarter

The index rose 19.2% from 1 July to 31 July, then lost 11.2% in September. The P/E went from a low of 16.91 to 19.90 and back to 17.43 within three months, which says more about the volatility of the sector than about any trend in its valuation.

Against the Nifty 50

Nifty IT usually trades at a premium to the Nifty 50. On 1 October 2026 its P/E was 0.93 times the Nifty 50's 19.19.

• Since March 2021 the ratio has ranged from 0.82 to 1.68, with a median of 1.24.
• A year ago it was 1.11 (24.47 against 21.96); two years ago, on 1 October 2024, it was 1.43 (34.80 against 24.25).

The discount has come from both sides: the IT index fell while the broader index also de-rated, though less.

What this does not tell you

It is not a buy signal. A low P/E says the index is cheap against its own history. It does not say that earnings will keep growing or that the price will recover.

Earnings are derived. The "earnings behind the index" figures divide the close by NSE's published P/E. They move when the basket changes at NSE's twice-yearly rebalancing, not only when companies earn more.

Five years is a short record. It contains the 2022 fall and the 2023–24 rise, and a median over a window that short is not a fair value.

It is not your technology fund. A fund holds its own selection at its own weights.

Where to go from here

The Nifty IT valuation page has the daily history. For how technology funds have done, see technology fund returns. The guide on how to read an index P/E ratio explains the arithmetic, and the Nifty 50 P/E post covers the benchmark used above.