Nifty & Sector Valuation Comparisons
Evaluate relative valuation premiums and discounts across sectoral indices versus the flagship NIFTY 50 index.
Cross-Sector Valuation Matrix
Valuation spreads measured relative to NIFTY 50 PE of 19.79.
| Sectoral Index | Sector PE | vs Nifty PE (%) | 10Y Percentile | Sector PB | Dividend Yield | Deep Dive |
|---|---|---|---|---|---|---|
| NIFTY AUTO | 31.55 | +59.4% | 82th pctl | 4.14 | 1.07% | Charts → |
| NIFTY BANK | 13.36 | -32.5% | 14th pctl | 1.69 | 0.69% | Charts → |
| NIFTY CONSUMER DURABLES | 62.22 | +214.4% | 86th pctl | 10.01 | 0.39% | Charts → |
| NIFTY FINANCIAL SERVICES | 15.65 | -20.9% | 26th pctl | 2.36 | 0.98% | Charts → |
| NIFTY FMCG | 31.84 | +60.9% | 34th pctl | 7.63 | 1.03% | Charts → |
| NIFTY HEALTHCARE INDEX | 44.01 | +122.4% | 78th pctl | 5.44 | 0.46% | Charts → |
| NIFTY IT | 18.39 | -7.1% | 28th pctl | 5.06 | 2.78% | Charts → |
| NIFTY MEDIA | 41.15 | +107.9% | 68th pctl | 1.56 | 0.50% | Charts → |
| NIFTY METAL | 15.79 | -20.2% | 58th pctl | 2.58 | 1.27% | Charts → |
| NIFTY OIL & GAS | 10.90 | -44.9% | 32th pctl | 1.35 | 1.79% | Charts → |
| NIFTY PHARMA | 41.84 | +111.4% | 85th pctl | 5.08 | 0.52% | Charts → |
| NIFTY PRIVATE BANK | 17.04 | -13.9% | 38th pctl | 1.96 | 0.64% | Charts → |
| NIFTY PSU BANK | 7.48 | -62.2% | 42th pctl | 1.15 | 0.77% | Charts → |
| NIFTY REALTY | 36.26 | +83.2% | 74th pctl | 3.72 | 0.49% | Charts → |
Understanding Sector Valuation Spreads
Valuation spreads evaluate structural premiums across business models. Banking and Financial Services historically trade at a discount to the broader NIFTY 50 PE multiple due to balance-sheet leverage, whereas Consumer, FMCG, and Technology indices typically trade at substantial premiums reflecting high asset-turnover, return on capital (ROCE), and consistent earnings visibility.
Asset-Heavy vs Capital-Light Multiples
When comparing asset-heavy sectors like Metals, Realty, and Oil & Gas, standard Price-to-Earnings ratios should be read in conjunction with Price-to-Book (PB) ratios and commodity cycle positions. High peak-cycle earnings can mechanically compress PE multiples, while trough-cycle downturns often make multiples appear superficially inflated.