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indicesnifty it
fundamentals

Nifty IT

Factsheet
The Nifty IT index captures the performance of the Indian IT companies. The Nifty IT Index comprises of 10 companies listed on the National Stock Exchange (NSE). The Nifty IT index is computed using free float market capitalization method with a base date of Jan 1, 1996 indexed to a base value of 1000 wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The base value of the index was revised from 1000 to 100 with effect from May 28, 2004. Nifty IT Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
27,486.70521.7 (1.93%) D
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
4.83
Average (3Y)
7.47
Average (5Y)
8.16
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
36.40

Frequently Asked Questions

What is the current P/E ratio of Nifty IT?
The current P/E ratio of Nifty IT is 17.70. Historical P/E trend charts are available in the Value section of the Fundamentals tab.
Is Nifty IT overvalued or undervalued based on current P/E?
Valuation context for Nifty IT — 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 IT?
The current P/B (Price-to-Book) ratio of Nifty IT is 4.83 Historical P/B trend charts are in the Value section of the Fundamentals tab.
What is the dividend yield of Nifty IT?
The aggregate dividend yield of Nifty IT is 3.39%. A yield above 2% indicates relatively high income generation from the index constituents. Historical dividend yield data is in the Value section of the Fundamentals tab.
What is the 10-year average P/E of Nifty IT?
The 10-year average P/E of Nifty IT 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 IT's constituent stocks?
The aggregate Return on Equity (ROE) of Nifty IT constituents is 41.61%. ROE measures how efficiently constituent companies generate profit from shareholder equity. An ROE above 15% reflects strong capital efficiency in the index portfolio. Historical ROE trends are in the Quality section of the Fundamentals tab.
What is the ROCE of Nifty IT's constituent stocks?
The aggregate Return on Capital Employed (ROCE) of Nifty IT constituents is 36.40%, alongside a ROE of 41.61%. 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 IT's constituents?
The net profit margin and operating margin of Nifty IT's constituents are shown in the Quality section of the Fundamentals tab.
What are the quality metrics of Nifty IT?
Key quality metrics of Nifty IT constituents — ROCE: 36.40%, ROE: 41.61%, PAT margin: 16.89%, Operating margin: 21.30% — reflect the aggregate profitability and efficiency of the index portfolio. ROE of 41.61% 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 IT's constituents?
The financial health of Nifty IT's constituent companies — including debt ratios and interest coverage — is shown in the Financial Health section of the Fundamentals tab.