Nifty Indices Broad Market and Sector Review – September 2026

Nifty Indices Broad Market and Sector Review – September 2026: Nifty Indices Performance and Valuation at a glance 08Oct2026

 
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(This is my 539th blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.

The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance. 

Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.) 

This periodic snapshot brings together the latest performance and valuation data, as of 30Sep2026, for the broad Nifty indices and the major market sectors. 

The aim is to understand what the numbers are saying today. It is not to predict what will happen next.

The data in this article are as on 30Sep2026, unless otherwise stated. 

This article builds on an earlier article (with data as of 31Aug2026). Please check it if you're interested. 

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Inside the Nifty 500 Index: How It Changed from 2021 to 2026 28Jul2026 

Nifty 500 Snapshot 30Jun2026

Nifty Valuation Tracker Series: June 2026 Update – Broad Market and Smart Beta Indices 04Jul2026 

BSE 500 Versus Nifty 500: Same Market, Different Indices 02Jan2026  (NSE Indices / Nifty Indices) (BSE Indices)

The Hidden Rotation in Indian Markets: Capex Leads, Mid/Smallcaps Rise, Financials Lag 02May026  (NSE Indices, Nifty Indices, Nifty sector indices) (Capital goods sector very broad)

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The following analysis is based on the charts attached below. 

 

1 Broad Market Performance

 

Two-year performance:

Indian equities have faced a prolonged period of stress. Since late end-Sep2024, the Nifty 500 has declined i per cent, significantly lagging most major global markets.

This weakness is now reflected in the numbers shown in the charts below: the Nifty 50 has delivered only 6.1 per cent CAGR over three years, despite the strong gains seen earlier in that period.

The recent correction is visible across the broad market. Most indices posted negative 1-month and 3-month returns. Nifty 50 was down 6.4 per cent over one month and 4.9 per cent over three months. 

However, longer-term returns remain healthy, with Nifty 50 delivering 11.5 per cent CAGR over 10 years.

 

 

2 Broad market valuations

Valuations remain widely dispersed. Nifty 50 trades at 19.4 times earnings, while Midcap 150 and Smallcap 250 are much more expensive at 28.4 and 34.5 times respectively. Smallcap 250 also has a low dividend yield of just 0.61 per cent.

 

 

3 Sector performance

Sector performance has been mixed. Capital Goods, Healthcare, Metals and Telecommunications have delivered strong one-year returns. In contrast, IT, FMCG and Consumer Services have struggled. 

 

The recent one-month correction, however, has been broad-based across almost all sectors.

 

4 Sector valuations

There is a wide valuation gap between sectors. Capital Goods and Healthcare command very high PE ratios of 44.2 and 42.0 respectively. Financial Services, Oil & Gas, Metals and Telecommunications appear relatively cheaper. 

IT stands out with a relatively modest PE of 17.4 and the highest dividend yield among the top ten sectors at 2.89 per cent.

 

Nifty Healthcare climbed one place to third in the Nifty Total Market, from fourth a month ago. Nifty Auto slipped from third to fourth over the same period. 

 

 

5 Overall 

The data show a market that has corrected sharply in recent months, but valuations remain high in several midcap and sectoral pockets. 

 

The contrast between recent returns and current valuations remains worth watching.

 

 

Charts numbered 3 to 6 (as given in the chart) > 

all data as at end 30Sep2026 >

 

Chart 3 showing Nifty Broad Indices Trailing Returns >

Chart 4 showing Nifty Broad Indices Valuation Data >

Chart 5 showing Nifty Sector Indices Trailing Returns (Top 10 sectors by weight in Nifty Total Market index) >

Chart 6 showing Nifty Sectoral Indices Valuation Data (Top 10 sectors by weight in Nifty Total Market index) >

 

 

Past performance does not guarantee future returns. Please do your own research or consult a qualified financial adviser before making investment decisions.

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References and Additional Notes:

Nifty Index factsheets 

Nifty Total Market factsheet 

Nifty 500 factsheet

Nifty Financial Services factsheet 

Nifty Bank factsheet 

Nifty Capital Goods factsheet 

Nifty Healthcare factsheet 

Nifty Auto factsheet 

Nifty Oil & Gas factsheet 

Nifty IT factsheet 

Nifty FMCG factsheet 

Nifty Metal factsheet 

Nifty Consumer Services factsheet 

Nifty Telecommunications factsheet 

Nifty Power factsheet 

Nifty Consumer Durables factsheet    

          

NSE Index dashboard Sep2026

Nifty Return Profile

Nifty Sectoral Indices Calendar Year Returns: 2018 to 2026 (till 30Sep2026):       Top 10 Sectors in Nifty Total Market Index > Click on the chart to view better >

 

Screenshot of Nifty Total Market (755 stocks) factsheet 30Sep2026 >