Sector PE — the chart line

The PE of the stock's sector, using its NSE sectoral index as the benchmark.

There is no official "PE of a sector" — what everyone quotes is the PE of the sector's flagship NSE index (NIFTY IT for Information Technology, NIFTY AUTO for autos, and so on). NSE publishes that number every trading day, and this pane draws its history.

It is the natural companion to the stock's own PE pane above it: the stock line says what this company costs per rupee of profit, the sector line says what its neighbourhood costs. A stock re-rating alongside its whole sector is a very different story from one re-rating alone.

Two honest limits. The index holds the sector's large caps (often 10-20 names), not every listed company in the sector. And a few sectors have no NSE index at all — for those, no line appears.

INFY trades at PE 24 while the Sector PE (NIFTY IT) line shows 20 — the stock is priced at a premium to its sector. Whether that premium is deserved depends on its growth and quality versus peers.

NSE switched the index PE calculation from standalone to consolidated earnings in April 2021 — the level step around then in a long chart is a methodology change, not a market move. History starts April 2012, so older candles have no sector line under them.

Analysis only: Supath AI does not give investment advice. Consult a SEBI-registered financial advisor before making investment decisions.