Valuation
Is the Indian market cheap or dear against its own past?
The Nifty 50 trades at 19.4 times trailing earnings, higher than 61% of readings since 1999. Its CAPE, price over ten years of inflation-adjusted earnings, is 25.7.
For: long-term investors and asset allocators. Valuation says little about next month and more about the next decade.
Higher than 61% of readings since 1999
Higher than 68% of readings since 2009
Higher than 77% of readings since 2009
Higher than 81% of readings since 1999
Every index against its own history
Percentiles compare today with each index's own past: 90 means more expensive than 90% of the time. NSE switched from standalone to consolidated earnings in March 2021; we put older P/Es on the consolidated basis where the switch can be measured reliably, and withhold CAPE where it can't.
| Index | P/E | P/E pctile | P/B | P/B pctile | CAPE | CAPE pctile | Div. yield | Yield pctile |
|---|---|---|---|---|---|---|---|---|
| Nifty 50 | 19.4 | 61 | 2.78 | 10 | 25.7 | 68 | 1.09% | 18 |
| Nifty 500 | 21.8 | 65 | 3.09 | 46 | 31.5 | 77 | 0.91% | 3 |
| Nifty Next 50 | 18.3 | 36 | 3.35 | 58 | 37.4 | 71 | 0.91% | 21 |
| Nifty IT | 17.4 | 25 | 4.85 | 13 | 22.1 | 18 | 2.14% | 87 |
| Nifty FMCG | 30.9 | 41 | 7.39 | 14 | 37.5 | 14 | 0.93% | 2 |
| Nifty Bank | 13.0 | 33 | 1.65 | 6 | 23.8 | 47 | 0.66% | 23 |
| Nifty Energy | 14.5 | 69 | 2.01 | 47 | 17.4 | 60 | 1.16% | 9 |
| Nifty Pharma | 40.9 | 77 | 4.98 | 41 | 54.2 | 93 | 0.60% | 20 |
| Nifty Midcap 100 | 28.0 | 41 | 3.77 | 82 | – | – | 0.59% | 7 |
| Nifty 100 | 19.1 | 45 | 2.87 | 12 | 27.4 | 49 | 1.05% | 10 |
| Nifty Infrastructure | 21.8 | 62 | 2.60 | 51 | – | – | 0.83% | 20 |
| Nifty PSU Bank | 7.2 | 21 | 1.11 | 40 | 13.8 | 74 | 0.75% | 35 |
| Nifty Realty | 35.9 | 6 | 3.70 | 74 | – | – | 0.47% | 48 |
| Nifty Smallcap 100 | 37.7 | 94 | 3.73 | 80 | – | – | 0.60% | 0 |
| Nifty Metal | 16.7 | 42 | 2.71 | 93 | – | – | 1.05% | 22 |
| Nifty Auto | 30.6 | 52 | 4.11 | 21 | – | – | 1.06% | 59 |
| Nifty 200 | 20.5 | 38 | 3.02 | 27 | 29.4 | 20 | 0.96% | 6 |
| Nifty Financial Services | 15.1 | 27 | 2.28 | 2 | 24.1 | 1 | 0.91% | 43 |
| Nifty Smallcap 250 | 34.5 | 57 | 3.42 | 62 | 52.0 | – | 0.57% | 3 |
| Nifty Midcap 150 | 28.4 | 40 | 3.83 | 67 | – | – | 0.61% | 18 |
| Nifty MidSmallcap 400 | 30.3 | 48 | 3.68 | 66 | – | – | 0.60% | 13 |
| Nifty LargeMidcap 250 | 22.9 | 10 | 3.28 | 22 | – | – | 0.83% | 16 |
Valuation history
Nifty 50: trailing P/E, consolidated basis
Weekly. Before March 2021 NSE used standalone earnings; the consolidated-basis line rescales that history.
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Nifty 50: CAPE
Price over the ten-year average of inflation-adjusted earnings. Adjusted CAPE is blank where the 2021 switch can't be bridged reliably.
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Stocks against bonds
Nifty 50: earnings yield against the bond yield
Weekly. Higher means equities pay more relative to government bonds.
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Nifty 500 CAPE: ours against IIMA's
Monthly. IIMA's Indian Valuation Index (cited) uses its own earnings data; agreement in direction is the check.
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