Nifty Alpha 50 PE Ratio
Valuation Percentile
Nifty Alpha 50's PB is cheaper than 52% of the last 5 years.
The Nifty Alpha 50 PE ratio is 27.44 as of 1 October 2026, about 10% below its 5-year median of 30.61, which places it in moderately undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 28.97 | -5.28% |
| 10 Years | 30.93 | -11.28% |
| 7 Years | 31.33 | -12.42% |
| 5 Years | 30.61 | -10.36% |
| 3 Years | 31.18 | -11.99% |
| 1 Year | 27.49 | -0.18% |
Historical PE Ratio
Data gap. P/E is unavailable from 25 Sept 2020 to 31 Dec 2020 and 31 Mar 2021 to 29 Jun 2021 because the index’s aggregate earnings were negative, so no ratio could be published. The line bridges those dates, and medians and forward returns skip them.
Series start. P/E is published from 19 Nov 2012. Index values go back to 31 Dec 2003.
Earnings
Index earnings are the profits behind the index level: the closing value divided by the P/E ratio, in index points. The line moves in steps because it changes only when trailing four-quarter profits are updated or the constituents change. Compare it with price to see whether a move came from earnings or from a change in what investors pay for them.
Nifty Alpha 50 earnings grew +17.67% a year over the last 5 years, while the index moved +11.24% a year and its P/E went from 36.4 to 27.4.
Earnings growth is annualised from the last trading day at or before the start of each window to 1 Oct 2026. Price growth uses the index level over the same two dates, excluding dividends. EPS is undefined on days with no published P/E, so those days are skipped. Past growth, not a forecast.
Ways to invest in Nifty Alpha 50
2 ETFs and 2 index funds track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (2)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Kotak Nifty Alpha 50 ETF | ALPHA | 51.26 | - | - | +7.55% |
| Motilal Oswal Nifty Alpha 50 ETF | MOALPHA50 | 53.17 | - | - | +6.68% |
Index funds (2)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| Bandhan Nifty Alpha 50 Index Fund | Bandhan AMC Limited | 14.041 Oct 2026 | 2023 |
| Kotak Nifty Alpha 50 Index Fund | Kotak Mahindra Asset Management Company Limited. | 10.341 Oct 2026 | 2025 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 2012 returned a median of +16.84% (best +156.74%, worst -29.71%).
Today's PE of 27.44 sits in band 3 of 5 of this index's history (PE 27.4 to 31.8). From this band, 5-year forward returns had a median of +25.04% a year and were positive in 100% of windows (378 windows since 2012).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty Alpha 50. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty Alpha 50
The Nifty Alpha 50 contains 50 constituents. Its largest sectors by weight are Capital Goods (26.1%) and Financial Services (22.7%).
Recent changes
4 October 2026: Added Cupid Ltd., HFCL Ltd., Kirloskar Oil Eng Ltd., MTAR Technologies Ltd., Sterlite Technologies Ltd., TD Power Systems Ltd., Welspun Corp Ltd.. Removed Amber Enterprises India Ltd., Anand Rathi Wealth Ltd., Delhivery Ltd., Fortis Healthcare Ltd., HDFC Asset Management Company Ltd., Max Financial Services Ltd., Muthoot Finance Ltd..
Constituent list as of 4 October 2026, sourced from NSE Indices. Weights as of 30 September 2026, from the NSE factsheet.
How this index works
- Universe
- • The company must be domiciled in India and traded (listed & traded and not listed but permitted to trade) at the National Stock Exchange (NSE) are eligible for inclusion in the Nifty indices • Convertible stock, bonds, warrants, rights, and preferred stock that provide a guaranteed fixed return,
- Selection
- Introduction The index aims to measure the performance of securities listed on NSE with high Alphas. In order to make the 50 stocks index investible and replicable, criteria such as turnover and market capitalization are applied while selection of securities.
- Rebalanced
- Quarterly
- Weight cap
- The month over month change in allocation to equity component (Nifty 50 TR, excluding arbitrage component) by asset allocation model at the time of rebalancing is capped at 10%
Summarised from NSE's official methodology document (PDF) for the Nifty Alpha 50; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty Alpha 50 PE ratio?
As of 1 October 2026, the Nifty Alpha 50 PE ratio is 27.44. That is about 10% below its 5-year median of 30.61 and about 0% below its 1-year median of 27.49.
Is the Nifty Alpha 50 undervalued right now?
On a historical basis it screens as moderately undervalued. Its current PE of 27.44 sits below every median window: 1-year (27.49), 3-year (31.18), 5-year (30.61), 7-year (31.33), 10-year (30.93) and full-history (28.97).
What is a normal PE ratio for the Nifty Alpha 50?
Over the past five years its median PE has been 30.61, and over the past three years 31.18. Today's 27.44 is around the middle of that historical range.
How many stocks are in the Nifty Alpha 50?
The Nifty Alpha 50 contains 50 stocks. By number of companies, its largest sectors are Financial Services (17 stocks), Capital Goods (11 stocks) and Metals & Mining (5 stocks).
What returns has the Nifty Alpha 50 delivered?
As of September 2026, the Nifty Alpha 50 total return (with dividends reinvested) is +11.44% over the past year and +12.03% annualized over the past five years. One-year figures are absolute; multi-year figures are annualized (CAGR). Data from the NSE factsheet.
How volatile is the Nifty Alpha 50?
Over the year to September 2026, the Nifty Alpha 50 had an annualized volatility (standard deviation of daily returns) of 19.21%. Its beta versus the Nifty 50 is 1.17, meaning it has moved more than the broad market.
What is a typical one-year return for the Nifty Alpha 50?
Across every one-year holding window since 2012, the Nifty Alpha 50 total return has a median of +16.84%, with the best window at +156.74% and the worst at -29.71%. Based on NSE Total Returns Index data; a past distribution, not a prediction.
What have 5-year returns been from PE levels like today's?
The Nifty Alpha 50 currently trades at a PE of 27.44, in band 3 of 5 of its own PE history. Across 378 overlapping 5-year windows since 2012 that began in this band, the median forward return was +25.04% a year, positive in 100% of windows. A past distribution, not a prediction.
How fast have Nifty Alpha 50 earnings grown?
Nifty Alpha 50 earnings, measured as the index level divided by its P/E, grew +17.67% a year over the last 5 years, while the index itself moved +11.24% a year and its P/E fell from 36.35 to 27.44. Past growth, not a forecast.
How often is the Nifty Alpha 50 rebalanced?
The Nifty Alpha 50 is rebalanced quarterly. Details are in the official NSE methodology document.
Last updated: 1 October 2026.