Nifty 50 PE Ratio indicates market perception of earnings. Assessing historical trends helps evaluate stock valuation and investor sentiment toward the company`s future earnings potential. The P / E ratio is a measure to know how expensive the stock is when compared to scrips within the same industry or with the industry. Index P / E can be used as an effective comparison benchmark. Analyze NIFTY 50 index PE ratio with historical trends, component stock valuation, and market cap weighted PE metrics for your trading journal. The NIFTY 50 is a benchmark Indian stock market index that represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.