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Nifty Next 50 now trades below the Nifty 50 on P/E

On 12 October 2026 the Nifty Next 50's P/E was 17.9 against 19.1 for the Nifty 50, a gap of −1.2 points. The gap since 1999, from −12 to +71.

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A telescope pointed at a distant horizon at dusk

The gap today

On 12 October 2026 the Nifty 50 traded at a P/E of 19.12 and the Nifty Next 50 at 17.91. The Next 50 is 1.21 points cheaper, or about 94% of the Nifty 50's multiple.

The Nifty 50 figure is the one in our Nifty 50 P/E post. The Next 50 is covered separately in the Next 50 index funds comparison.

A history of the gap

Our daily valuation record covers both indices from 1 January 1999, with 6,884 days where both have a positive P/E. Across them:

Measure of Next 50 P/E minus Nifty 50 P/E Value
Mean +0.54 points
Median −0.79 points
Lowest −12.25 (27 Feb 2002)
Highest +71.45 (22 Jun 2020)
Today −1.21

Today's gap is lower than on 44% of all days. In other words the Next 50's discount is ordinary, not extreme: the median day has the Next 50 about 0.8 points cheaper.

The 2018–2020 stretch

The mean is above the median because of a handful of very expensive years. On 22 June 2020 the Next 50's P/E reached 97.11 against the Nifty 50's 25.66. A P/E that high usually reflects depressed earnings in the denominator, not a price-led surge, and it came in the pandemic quarter.

Yearly averages show how the premium built and unwound:

Year Nifty 50 Next 50 Gap
2015 22.4 21.9 −0.5
2016 21.9 25.1 +3.2
2017 24.7 29.8 +5.1
2018 26.4 38.4 +11.9
2019 27.7 43.4 +15.7
2020 28.6 50.2 +21.6
2021 30.6 32.8 +2.2
2022 21.5 21.8 +0.3
2023 21.7 26.0 +4.3
2024 22.7 24.8 +2.1
2025 21.9 21.5 −0.4
2026 (to 12 Oct) 20.9 19.2 −1.7

The premium rose every year from 2015 to 2020, peaking at an average of +21.6 points, then collapsed to +2.2 in 2021 and has stayed within about five points ever since. The 2025 and 2026 averages are the first negative gaps since 2015.

What the gap does and does not say

  • P/E depends on earnings. The Next 50 holds more cyclical and recently listed companies, so its earnings are more volatile and its P/E swings more.
  • A gap that has been negative for about two years means the market has paid less per rupee of earnings for the second tier than for the first. It does not tell you which will earn more from here.
  • To see how the two have actually performed, Nifty Next 50 vs Nifty 50 every year since 2013 compares returns calendar year by calendar year.

For other indices, the cheapest and dearest NSE indices ranks all of them against their own history.

Source: NSE index valuation data, daily, 1 January 1999 to 12 October 2026. P/E as published for each index. Not a recommendation.

Frequently asked questions

What is the Nifty Next 50?

The 50 companies ranked just below the Nifty 50 by size on the NSE. It is often described as the next tier of large caps.

Is the Next 50 usually more expensive than the Nifty 50?

On average yes, but only slightly: across 6,884 daily readings since 1999 the mean gap in P/E is +0.5 points and the median −0.8. The mean is pulled up by a few years, notably 2018–2020.

Does a cheaper P/E mean a better buy?

No. P/E is one ratio and the Next 50's earnings can swing widely. This post records where the valuation stands against its own history and makes no call on returns.

This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.

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