Nifty IT PE Ratio
Valuation Percentile
Nifty IT's PB is cheaper than 95% of the last 5 years.
The Nifty IT PE ratio is 19.57 as of 20 August 2026, about 28% below its 5-year median of 27.29, which places it in significantly undervalued territory on a historical basis.
PE Ratio vs Historical Medians
| Period | Median PE | Current vs Median |
|---|---|---|
| Full history | 24.23 | -19.23% |
| 15 Years | 21.54 | -9.15% |
| 10 Years | 25.13 | -22.12% |
| 7 Years | 27.12 | -27.84% |
| 5 Years | 27.29 | -28.29% |
| 3 Years | 27.69 | -29.32% |
| 1 Year | 23.09 | -15.23% |
Historical PE Ratio
Performance and risk
1-year holding windows since 1999 returned a median of +14.76% (best +230.20%, worst -81.75%).
Today's PE of 20.00 sits in band 2 of 5 of this index's history (PE 19.1 to 22.1). From this band, 5-year forward returns had a median of +16.55% a year and were positive in 100% of windows (1,274 windows since 1999).
View full performance and risk
Returns as of July 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 16 August 2026, sourced from NSE Indices. Weights as of 31 July 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 20 August 2026, the Nifty IT PE ratio is 19.57. That is about 28% below its 5-year median of 27.29 and about 15% below its 1-year median of 23.09.
Is the Nifty IT undervalued right now?
On a historical basis it screens as significantly undervalued. Its current PE of 19.57 sits below every median window: 1-year (23.09), 3-year (27.69), 5-year (27.29), 7-year (27.12), 10-year (25.13), 15-year (21.54) and full-history (24.23).
What is a normal PE ratio for the Nifty IT?
Over the past five years its median PE has been 27.29, and over the past three years 27.69. Today's 19.57 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 July 2026, the Nifty IT total return (with dividends reinvested) is -11.16% over the past year and +2.22% 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 July 2026, the Nifty IT had an annualized volatility (standard deviation of daily returns) of 25.11%. Its beta versus the Nifty 50 is 0.78, 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 +14.76%, 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 20.00, in band 2 of 5 of its own PE history. Across 1,274 overlapping 5-year windows since 1999 that began in this band, the median forward return was +16.55% a year, positive in 100% of windows. A past distribution, not a prediction.
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: 20 August 2026.