Wednesday's reading
The Nifty Next 50 closed at 69,361.55 on Wednesday, 20 May 2026, at a price-to-earnings ratio of 19.12. Its price-to-book ratio was 3.70 and its dividend yield 1.44%.
The Nifty 50 closed the same day at a P/E of 20.41. The fifty companies ranked just below the Nifty 50 are, on trailing earnings, the cheaper of the two baskets.
NSE publishes these figures daily; the full series is on the Next 50 valuation page.
A year below the Nifty 50
Since 31 March 2021, when NSE moved its index P/Es to consolidated earnings, there have been 1,266 sessions. Over them the Next 50's P/E has been a median 1.07 times the Nifty 50's, ranging from 0.86 (9 February 2026) to 1.43 (12 May 2021).
On 20 May it was 0.94 times. Only 159 sessions had a lower multiple, about 13%.
More striking is the run. The Next 50's P/E has been below the Nifty 50's on every session after 22 May 2025, 245 in a row. It has happened before: most sessions from October 2021 to July 2022 had the Next 50 cheaper too. In all, 481 of the 1,266 sessions did.
Against its own record
| P/E | P/B | Dividend yield | |
|---|---|---|---|
| 20 May 2026 | 19.12 | 3.70 | 1.44% |
| Lowest since Mar 2021 | 17.09 | 3.17 | 0.95% |
| Median since Mar 2021 | 23.38 | 4.31 | 1.39% |
| Highest since Mar 2021 | 44.01 | 5.32 | 2.37% |
- P/E: 55 of 1,266 sessions closed lower, about 4%. The low of the whole period came this year: 17.09 on 30 March 2026, with the index at 60,349.80. The high was 44.01 on 9 April 2021.
- P/B: 266 sessions closed lower, about 21%. The low was 3.17 on 28 February 2025.
- Dividend yield: 1.44% against a median of 1.39%; 486 sessions offered more.
On earnings the index is near the bottom of its range. On book value it is in the cheaper quarter, and on dividends near the middle.
Profits grew, the price did not keep up
On 20 May 2025 the Next 50 closed at 66,165.50 at a P/E of 21.91. Over the year since:
- The index rose 4.8%.
- The P/E fell 12.7%.
- Dividing one by the other, the earnings behind the index rose about 20%.
The Nifty 50 had a different year. It fell 4.2%, from 24,683.90 to 23,659.00, and its P/E fell from 22.08 to 20.41, which implies earnings up about 3.7%. The Next 50's profits grew more than five times as fast, and the price rose less than that.
This calendar year the gap is plain in the prices. The Next 50 ended 2025 at 69,364.50, almost exactly where it is now. The Nifty 50 ended 2025 at 26,129.60 and is 9.5% lower. From the 30 March low, the Next 50 has gained 14.9%. It remains 10.9% below its record close of 77,813.25, set on 27 September 2024.
The 2021 switch went the other way
For most indices, NSE's move to consolidated earnings on 31 March 2021 cut the P/E. The Nifty 50's went from 40.43 to 33.20. The Next 50's rose, from 38.23 to 42.54, with the index up 0.3%. For this basket, consolidated profits came out smaller than standalone ones.
Either way, readings before and after the switch are on different scales. The older standalone series swung from 5.04 to 97.11 between 1999 and March 2021, and we do not compare the current number with it.
What this does not tell you
A low P/E is not a recommendation. The Next 50 is cheaper on trailing earnings. That says nothing about which basket does better next.
The members move. The Next 50 holds the companies ranked just below the Nifty 50, and companies move between the two at NSE's reviews. A different set of companies brings a different earnings figure.
Fifty companies can be lopsided. A few large profit swings can move the total for a basket this size, which is why the P/E has been as high as 44 and as low as 17 in five years.
Where to go from here
The Next 50 valuation page has the daily history. For the large-cap index this month, see the May Nifty 50 P/E post, and for mid caps, the Midcap 150 in March.
The guide to index funds and ETFs covers how these indices are tracked, and how to read an index P/E ratio the arithmetic.
Frequently asked questions
What is the Nifty Next 50 P/E ratio in May 2026?
The Nifty Next 50 closed at a P/E of 19.12 on 20 May 2026, with the index at 69,361.55. Its price-to-book ratio was 3.70 and its dividend yield 1.44%. The Nifty 50's P/E the same day was 20.41.
Is the Nifty Next 50 usually more expensive than the Nifty 50?
Usually, but not now. Since 31 March 2021 the Next 50's P/E has been a median 1.07 times the Nifty 50's. On 20 May 2026 it was 0.94 times, lower than on 87% of sessions, and it has been below the Nifty 50's every session after 22 May 2025, a run of 245 sessions.
Why has the Nifty Next 50 P/E fallen?
Mostly because its earnings grew. Over the year to 20 May 2026 the index rose 4.8% while its P/E fell from 21.91 to 19.12, which implies earnings up about 20%. Over the same year the Nifty 50 fell 4.2% and its earnings rose about 3.7%.
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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