The long run
The Nifty Next 50 holds the 50 companies ranked just below the Nifty 50. From 31 December 2012 to 5 October 2026, a stretch of about 13.8 years, the two indices did this.
| 31 Dec 2012 | 5 Oct 2026 | Multiple | Per year | |
|---|---|---|---|---|
| Nifty 50 | 5,905.10 | 22,555.75 | 3.82x | 10.23% |
| Nifty Next 50 | 12,340.05 | 69,213.75 | 5.61x | 13.35% |
These are price returns from NSE's index levels, without dividends. The index levels here start in 2012. About three points a year in favour of the Next 50 is a large gap over 13 years.
But it is a lumpy edge
| Year | Nifty 50 | Nifty Next 50 | Gap |
|---|---|---|---|
| 2013 | 6.8% | 4.8% | -2.0 |
| 2014 | 31.4% | 44.4% | +13.0 |
| 2015 | -4.1% | 7.0% | +11.1 |
| 2016 | 3.0% | 7.1% | +4.1 |
| 2017 | 28.6% | 44.8% | +16.2 |
| 2018 | 3.2% | -9.0% | -12.2 |
| 2019 | 12.0% | 0.5% | -11.5 |
| 2020 | 14.9% | 14.8% | -0.1 |
| 2021 | 24.1% | 29.9% | +5.8 |
| 2022 | 4.3% | -0.1% | -4.4 |
| 2023 | 20.0% | 26.4% | +6.4 |
| 2024 | 8.8% | 27.5% | +18.7 |
| 2025 | 10.5% | 2.0% | -8.5 |
| 2026 to 5 Oct | -13.7% | -0.2% | +13.5 |
Calendar-year price returns, with the gap in percentage points. In the 13 complete years from 2013 to 2025 the Next 50 won seven (2014 to 2017, 2021, 2023 and 2024) and lost six. Three things follow.
- The wins are bigger than the losses. The seven wins averaged +10.8 points; the six losses averaged -6.4 (-38.7 points in all).
- Runs matter. Four wins in a row from 2014 to 2017, then 2018 and 2019 both lost by more than 11 points. Someone who bought the Next 50 at the end of 2017 had a fund that trailed the Nifty 50 for the next two years.
- 2026 is the reverse of 2025. The Next 50 is almost flat this year (-0.2%) while the Nifty 50 is down 13.7%. A year earlier it had trailed by 8.5 points.
Valuation today
| 5 Oct 2026 | Nifty 50 | Nifty Next 50 |
|---|---|---|
| P/E | 19.30 | 18.14 |
| P/B | 2.77 | 3.33 |
| Dividend yield | 1.23% | 1.05% |
| Median P/E since Mar 2021 | 22.15 | 23.12 |
The Next 50 is cheaper than the Nifty 50 on earnings (a ratio of 0.94) and dearer on book value. Since March 2021 the ratio of the two P/Es has had a median of 1.04, a low of 0.86 and a high of 1.43, and the Next 50 has been the cheaper of the two on 575 of 1,362 sessions. Both P/Es are near the bottom of their own range: the Next 50's has been lower on 17 sessions since March 2021 and the Nifty 50's on 8.
What this does not tell you
Price returns understate both. The Nifty 50 pays a higher dividend yield, which adds to its true return more than the Next 50's.
The index changes. The Next 50 is reconstituted from time to time, and companies that do well graduate into the Nifty 50. The index's past is partly the story of its members being promoted out of it.
The edge is not guaranteed. Our look at the Nifty Next 50 index funds shows what you pay and how closely the funds track.
A year is a short sample. The seven wins in 13 years do not make the next year more likely to be a win.
Where to go from here
The guide to index funds and ETFs covers how these funds work. Active vs passive investing over the long run is a related read, and the Nifty Next 50 valuation page has the daily P/E series.
Frequently asked questions
Has the Nifty Next 50 beaten the Nifty 50?
Over the long run, yes. From 31 December 2012 to 5 October 2026 the Nifty Next 50 rose 5.61 times, about 13.35% a year, and the Nifty 50 rose 3.82 times, about 10.23% a year. Both figures are price returns. In single calendar years the Next 50 won only 7 of the 13 complete years from 2013 to 2025.
Is the Nifty Next 50 cheaper than the Nifty 50 now?
On earnings, slightly. On 5 October 2026 the Next 50 had a P/E of 18.14 against 19.30 for the Nifty 50, a ratio of 0.94. On book value it is dearer: 3.33 against 2.77. Since March 2021 the Next 50's P/E has been below the Nifty 50's on 575 of 1,362 sessions.
How far is the Nifty Next 50 from its peak?
Its record close was 77,813.25 on 27 September 2024. At 69,213.75 on 5 October 2026 it is 11.1% below that. The Nifty 50, at 22,555.75, is 14.3% below its own record of 26,328.55, set on 2 January 2026.
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.
Keep reading
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