Nifty IT PE Ratio
Valuation Percentile
Nifty IT's PB is cheaper than 99% of the last 5 years.
The Nifty IT PE ratio is 17.80 as of 1 October 2026, about 34% below its 5-year median of 27.12, which places it in significantly undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 24.18 | -26.37% |
| 15 Years | 21.53 | -17.32% |
| 10 Years | 25.13 | -29.17% |
| 7 Years | 27.12 | -34.37% |
| 5 Years | 27.12 | -34.37% |
| 3 Years | 27.54 | -35.37% |
| 1 Year | 21.08 | -15.56% |
Historical PE Ratio
Series start. P/E is published from 1 Jan 1997. Index values go back to 1 Jan 1996.
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 IT earnings grew +10.82% a year over the last 5 years, while the index moved -4.04% a year and its P/E went from 36.5 to 17.8.
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 IT
10 ETFs and 7 index funds track this index. Prices and NAVs as of 1 Oct 2026.
ETFs (10)
| ETF | Symbol | Price | NAV | Premium | 1Y |
|---|---|---|---|---|---|
| Nippon India ETF Nifty IT | ITBEES | 31.55 | - | - | -15.37% |
| Mirae Asset Nifty IT ETF | ITETF | 30.07 | - | - | -15.22% |
| ICICI Prudential Nifty IT ETF | ITIETF | 31.1 | - | - | -16.12% |
| Kotak Nifty IT ETF | IT | 31.06 | - | - | -15.77% |
| HDFC NIFTY IT ETF | HDFCNIFIT | 30.21 | - | - | -16.17% |
Index funds (7)
| Fund | AMC | NAV | Since |
|---|---|---|---|
| ICICI Prudential Nifty IT Index Fund | ICICI Prudential Asset Management Company Limited | 10.061 Oct 2026 | 2022 |
| Axis Nifty IT Index Fund | Axis Asset Management Co. Ltd. | 9.951 Oct 2026 | 2023 |
| Bandhan Nifty IT Index Fund | Bandhan AMC Limited | 9.631 Oct 2026 | 2023 |
| Nippon India Nifty IT Index Fund | Nippon Life India Asset Management Limited | 7.771 Oct 2026 | 2024 |
| Navi NiftyIT Index Fund | Navi AMC Limited | 8.451 Oct 2026 | 2024 |
Listed for information only, not a recommendation. Check expense ratio and tracking difference before investing.
Performance and risk
1-year holding windows since 1999 returned a median of +14.52% (best +230.20%, worst -81.75%).
Today's PE of 17.80 sits in band 1 of 5 of this index's history (PE below 19.1). From this band, 5-year forward returns had a median of +23.53% a year and were positive in 100% of windows (1,309 windows since 1999).
View full performance and risk
Returns as of September 2026, from the NSE factsheet for the Nifty IT. 1-year returns are absolute; 5-year returns are annualized.
Stocks in the Nifty IT
The Nifty IT contains 10 constituents.
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
- Selection
- The index is designed to reflect the behaviour of companies engaged into activities such as software development, hardware, IT infrastructure etc.
- Rebalanced
- Semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July.
- Weight cap
- For all other sectoral indices, the weight of each stock is capped at 33% and the weight of top 3 stocks is capped at 62%
Summarised from NSE's official methodology document (PDF) for the Nifty IT; the PDF is authoritative.
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Frequently Asked Questions
What is the current Nifty IT PE ratio?
As of 1 October 2026, the Nifty IT PE ratio is 17.80. That is about 34% below its 5-year median of 27.12 and about 16% below its 1-year median of 21.08.
Is the Nifty IT undervalued right now?
On a historical basis it screens as significantly undervalued. Its current PE of 17.80 sits below every median window: 1-year (21.08), 3-year (27.54), 5-year (27.12), 7-year (27.12), 10-year (25.13), 15-year (21.53) and full-history (24.18).
What is a normal PE ratio for the Nifty IT?
Over the past five years its median PE has been 27.12, and over the past three years 27.54. Today's 17.80 is toward the lower end of that historical range.
How many stocks are in the Nifty IT?
The Nifty IT contains 10 stocks. By number of companies, its largest sectors are Information Technology (10 stocks).
What returns has the Nifty IT delivered?
As of September 2026, the Nifty IT total return (with dividends reinvested) is -15.92% over the past year and -2.63% 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 IT?
Over the year to September 2026, the Nifty IT had an annualized volatility (standard deviation of daily returns) of 25.09%. Its beta versus the Nifty 50 is 0.73, meaning it has moved less than the broad market.
What is a typical one-year return for the Nifty IT?
Across every one-year holding window since 1999, the Nifty IT total return has a median of +14.52%, with the best window at +230.20% and the worst at -81.75%. 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 IT currently trades at a PE of 17.80, in band 1 of 5 of its own PE history. Across 1,309 overlapping 5-year windows since 1999 that began in this band, the median forward return was +23.53% a year, positive in 100% of windows. A past distribution, not a prediction.
How fast have Nifty IT earnings grown?
Nifty IT earnings, measured as the index level divided by its P/E, grew +10.82% a year over the last 5 years, while the index itself moved -4.04% a year and its P/E fell from 36.55 to 17.80. Past growth, not a forecast.
How often is the Nifty IT rebalanced?
The Nifty IT is rebalanced semi-annually. The review of sectoral indices is undertaken semi-annually based on data for six months ending January and July. Details are in the official NSE methodology document.
Last updated: 1 October 2026.