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 19.85.
| Sectoral Index | Sector PE | vs Nifty PE (%) | 10Y Percentile | Sector PB | Dividend Yield | Deep Dive |
|---|---|---|---|---|---|---|
| NIFTY AUTO | 32.20 | +62.2% | 82th pctl | 4.23 | 1.05% | Charts → |
| NIFTY BANK | 13.57 | -31.6% | 14th pctl | 1.72 | 0.68% | Charts → |
| NIFTY CONSUMER DURABLES | 64.30 | +223.9% | 86th pctl | 12.17 | 0.35% | Charts → |
| NIFTY FINANCIAL SERVICES | 15.98 | -19.5% | 26th pctl | 2.41 | 0.96% | Charts → |
| NIFTY FMCG | 31.84 | +60.4% | 34th pctl | 7.66 | 1.03% | Charts → |
| NIFTY HEALTHCARE INDEX | 42.99 | +116.6% | 78th pctl | 5.31 | 0.47% | Charts → |
| NIFTY IT | 19.58 | -1.4% | 28th pctl | 5.40 | 2.61% | Charts → |
| NIFTY MEDIA | 41.58 | +109.5% | 68th pctl | 1.59 | 0.49% | Charts → |
| NIFTY METAL | 16.21 | -18.3% | 58th pctl | 2.66 | 1.27% | Charts → |
| NIFTY OIL & GAS | 11.08 | -44.2% | 32th pctl | 1.38 | 1.78% | Charts → |
| NIFTY PHARMA | 41.00 | +106.5% | 85th pctl | 4.97 | 0.54% | Charts → |
| NIFTY PRIVATE BANK | 17.33 | -12.7% | 38th pctl | 2.00 | 0.63% | Charts → |
| NIFTY PSU BANK | 7.66 | -61.4% | 42th pctl | 1.18 | 0.75% | Charts → |
| NIFTY REALTY | 38.56 | +94.3% | 74th pctl | 3.97 | 0.46% | 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.