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indicesnifty financial services
fundamentals

Nifty Financial Services

Factsheet
The Nifty Financial Services Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies. The Nifty Finance Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE). Nifty Financial Services Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. Nifty Financial Services Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
26,849.35-13.1 (-0.05%)
Value
Quality

Value

We look at aggregate consolidated P/E, P/B and Dividend Yield of the index as reported by NSE. Note that P/E values before 31st March 2021 are based on our own calculations
Current
2.73
Average (3Y)
3.09
Average (5Y)
3.33
P/B ratio is shown as reported by NSE.

Quality

We look at aggregate quality measures of the index like ROE, ROCE and margins. Numerator and denominator are separately calculated as weighted averages.
Latest as on 30 Sep 2025
8.44

Frequently Asked Questions

What is the current P/E ratio of Nifty Financial Services?
The current P/E ratio of Nifty Financial Services is 17.17. Historical P/E trend charts are available in the Value section of the Fundamentals tab.
Is Nifty Financial Services overvalued or undervalued based on current P/E?
Valuation context for Nifty Financial Services — comparing current P/E and P/B to their historical averages — is available in the Value section of the Fundamentals tab.
What is the P/B ratio of Nifty Financial Services?
The current P/B (Price-to-Book) ratio of Nifty Financial Services is 2.73 Historical P/B trend charts are in the Value section of the Fundamentals tab.
What is the dividend yield of Nifty Financial Services?
The aggregate dividend yield of Nifty Financial Services is 0.93%. Dividend yield tends to be inversely related to market valuations — a lower yield often coincides with higher price multiples. Historical dividend yield data is in the Value section of the Fundamentals tab.
What is the 10-year average P/E of Nifty Financial Services?
The 10-year average P/E of Nifty Financial Services is shown in the Value section of the Fundamentals tab as a reference line on the historical P/E chart.
What is the ROE of Nifty Financial Services's constituent stocks?
The aggregate Return on Equity (ROE) of Nifty Financial Services constituents is 14.97%. ROE measures how efficiently constituent companies generate profit from shareholder equity. An ROE above 10% reflects moderate capital efficiency. Historical ROE trends are in the Quality section of the Fundamentals tab.
What is the ROCE of Nifty Financial Services's constituent stocks?
The aggregate Return on Capital Employed (ROCE) of Nifty Financial Services constituents is 8.44%, alongside a ROE of 14.97%. ROCE measures profitability relative to total capital (debt + equity) and is a better indicator of capital efficiency for debt-heavy sectors. Historical ROCE data is in the Quality section of the Fundamentals tab.
What is the net profit margin of Nifty Financial Services's constituents?
The net profit margin and operating margin of Nifty Financial Services's constituents are shown in the Quality section of the Fundamentals tab.
What are the quality metrics of Nifty Financial Services?
Key quality metrics of Nifty Financial Services constituents — ROCE: 8.44%, ROE: 14.97%, PAT margin: 23.50%, Operating margin: 29.66% — reflect the aggregate profitability and efficiency of the index portfolio. ROE of 14.97% indicates how well constituent companies utilise shareholder equity. The full quality breakdown with historical trends is in the Quality section of the Fundamentals tab.
What is the financial health of Nifty Financial Services's constituents?
The financial health of Nifty Financial Services's constituent companies — including debt ratios and interest coverage — is shown in the Financial Health section of the Fundamentals tab.