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Indian (NIFTY) Financials Sector Analysis

UpdatedMay 21, 2026
DataAggregated Company Financials
Companies635
  • 7D0.2%
  • 3M-8.9%
  • 1Y-1.5%
  • YTD-8.1%

Over the last 7 days, the Financials industry has remained flat, although notably Bajaj Finance gained 3.0%. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 14% annually.

Sector Valuation and Performance

Has the Indian Financials Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 21 May 2026₹110.3t₹37.6t₹7.1t22.2x15.6x2.9x
Sat, 18 Apr 2026₹115.0t₹36.9t₹6.8t21.9x16.9x3.1x
Mon, 16 Mar 2026₹107.6t₹37.0t₹6.8t19.9x15.8x2.9x
Wed, 11 Feb 2026₹120.3t₹36.6t₹6.8t23x17.8x3.3x
Fri, 09 Jan 2026₹118.7t₹35.2t₹6.6t23.8x18x3.4x
Sun, 07 Dec 2025₹117.3t₹35.1t₹6.6t22.9x17.8x3.3x
Tue, 04 Nov 2025₹115.6t₹34.7t₹6.5t24.8x17.8x3.3x
Thu, 02 Oct 2025₹109.0t₹35.0t₹6.4t24.2x17x3.1x
Sat, 30 Aug 2025₹104.1t₹35.1t₹6.4t22.3x16.2x3x
Mon, 28 Jul 2025₹108.5t₹34.6t₹6.5t25.3x16.8x3.1x
Wed, 25 Jun 2025₹108.3t₹34.2t₹6.4t24.9x17x3.2x
Fri, 23 May 2025₹104.4t₹34.2t₹6.4t21x16.4x3.1x
Sun, 20 Apr 2025₹101.9t₹33.9t₹6.3t20.2x16.2x3x
Tue, 18 Mar 2025₹91.8t₹34.0t₹6.3t19x14.6x2.7x
Thu, 13 Feb 2025₹93.5t₹34.0t₹6.3t20.9x14.8x2.7x
Sat, 11 Jan 2025₹94.6t₹34.4t₹6.1t22.8x15.5x2.8x
Mon, 09 Dec 2024₹104.1t₹34.4t₹6.1t23.7x17.1x3x
Wed, 06 Nov 2024₹101.2t₹34.0t₹6.1t23.9x16.7x3x
Fri, 04 Oct 2024₹102.3t₹33.2t₹5.9t23.4x17.4x3.1x
Sun, 01 Sep 2024₹101.9t₹33.1t₹5.9t23.4x17.4x3.1x
Tue, 30 Jul 2024₹102.1t₹32.9t₹5.8t24.2x17.7x3.1x
Thu, 27 Jun 2024₹99.2t₹32.0t₹5.6t22.6x17.8x3.1x
Sat, 25 May 2024₹95.4t₹31.2t₹5.5t20.8x17.2x3.1x
Mon, 22 Apr 2024₹91.3t₹30.1t₹5.2t21.7x17.5x3x
Wed, 20 Mar 2024₹86.9t₹29.7t₹5.2t20x16.8x2.9x
Fri, 16 Feb 2024₹90.6t₹29.7t₹5.2t23.1x17.6x3.1x
Sun, 14 Jan 2024₹92.1t₹29.4t₹5.3t22.4x17.4x3.1x
Tue, 12 Dec 2023₹89.0t₹29.3t₹5.3t21.2x16.8x3x
Thu, 09 Nov 2023₹81.5t₹29.4t₹5.3t21.1x15.3x2.8x
Sat, 07 Oct 2023₹82.8t₹28.5t₹5.0t22.2x16.5x2.9x
Mon, 04 Sep 2023₹79.7t₹28.5t₹5.0t20.3x15.9x2.8x
Wed, 02 Aug 2023₹78.5t₹27.9t₹4.8t21.5x16.4x2.8x
Fri, 30 Jun 2023₹72.0t₹26.6t₹4.6t21.5x15.6x2.7x
Sun, 28 May 2023₹69.3t₹27.0t₹4.6t19.9x15.1x2.6x
Price to Earnings Ratio

15.1x


Total Market Cap: ₹69.3tTotal Earnings: ₹4.6tTotal Revenue: ₹27.0tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Financials Sector Price to Earnings3Y Average 16.7x202420252026
Current Industry PE
  • Investors are relatively neutral on the Indian Financials industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 16.7x.
  • The industry is trading close to its 3-year average PS ratio of 3.0x.
Past Earnings Growth
  • The earnings for companies in the Financials industry have grown 16% per year over the last three years.
  • Revenues for these companies have grown 12% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Indian Financials sector?

IN Market0.53%
Financials0.19%
Capital Markets1.53%
Insurance1.27%
Mortgage Finance0%0
Banks-0.039%
Consumer Finance-0.34%
Diversified Financial-0.51%
Industry PE
  • Investors are most optimistic about the Capital Markets industry which is trading above its 3-year average PE ratio of 25.5x.
    • Analysts are expecting annual earnings growth of 17.5%, which is higher than its past year's earnings growth of 4.4% per year.
  • Investors are most pessimistic about the Banks industry, which is trading below its 3-year average of 14.0x.
Forecasted Growth
  • Analysts are most optimistic on the Consumer Finance industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Banks industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
BAJFINANCE Bajaj Finance₹923.103.0%
+₹167.2b		0.4%PE30.1x
HDFCBANK HDFC Bank₹759.501.3%
+₹152.4b		-21.2%PB2x
BSE BSE₹4.22k8.5%
+₹134.5b		73.2%PE69.2x
POLICYBZR PB Fintech₹1.83k11.8%
+₹89.6b		6.0%PE126.4x
LICI Life Insurance Corporation of India₹800.551.7%
+₹85.4b		-6.2%PE9x

Latest News

BSE
₹4,218.60
BSE
7D
8.5%
1Y
73.2%
Narrative Update • May 19

BSE: Elevated Future P/E Will Limit Returns Despite Higher Margin Expectations

Analysts have lifted their price target for BSE from ₹1,751.82 to ₹3,620.00, citing updated assumptions around fair value, discount rate, revenue growth, profit margin and future P/E expectations. What's in the News BSE plans to pay an annual dividend of ₹10.00 per share, with payment scheduled for September 17, 2026, and ex-date and record date on July 10, 2026 (Key Developments).
MCX
₹3,441.70
Multi Commodity Exchange of India
7D
7.4%
1Y
170.1%
Narrative Update • May 18

MCX: Coal Exchange Subsidiary Will Sustain Elevated P/E And Restrain Future Returns

Analysts have raised their fair value estimate for Multi Commodity Exchange of India from ₹2,577.00 to about ₹2,647.82, citing updated assumptions related to discount rates, revenue growth, profit margins and future P/E expectations. What's in the News A board meeting is scheduled for May 8, 2026 at 15:00 IST to review and approve audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, and to consider a dividend recommendation for the full year (Key Developments).
IRFC
₹97.13
Indian Railway Finance
7D
-4.3%
1Y
-29.7%
HDFCBANK
₹759.50
HDFC Bank
7D
1.3%
1Y
-21.2%
Narrative Update • May 17

HDFCBANK: Governance Actions And Dividends Will Support Future Share Price Rebound

Analysts have slightly trimmed their fair value estimate for HDFC Bank, with the price target moving marginally lower from about ₹1,041.89 to ₹1,041.08, reflecting updated assumptions on the discount rate, revenue growth, profit margins and future P/E. What's in the News Board meeting on March 26, 2026 to consider re appointing Dr. Sunita Maheshwari as an independent director for a three year term from March 30, 2026 to March 29, 2029, subject to shareholder approval (Board Meeting).
ICICIPRULI
₹509.25
ICICI Prudential Life Insurance
7D
-6.1%
1Y
-17.6%
SBIN
₹950.90
State Bank of India
7D
-2.0%
1Y
20.8%
BAJFINANCE
₹923.10
Bajaj Finance
7D
3.0%
1Y
0.4%
Analysis Article • May 15

Here's Why We Think Bajaj Finance (NSE:BAJFINANCE) Is Well Worth Watching

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
PFC
₹429.35
Power Finance
7D
-3.7%
1Y
4.0%
LICI
₹800.55
Life Insurance Corporation of India
7D
1.7%
1Y
-6.2%
Narrative Update • May 13

LICI: Proposed Bonus Issue Will Unlock Further Undervalued Upside Potential

The latest analyst update trims Life Insurance Corporation of India’s implied fair value slightly from about ₹1,048.58 to ₹1,045.54, as analysts adjust their assumptions for discount rate, revenue growth, profit margin and future P/E in a relatively minor fine-tuning rather than a major reset. What's in the News Board meeting scheduled for April 13, 2026 at 16:00 Indian Standard Time to consider issuing bonus equity shares in a 1:1 ratio, with 1 fully paid equity share of ₹10 proposed for every existing fully paid equity share of ₹10 held on the record date, by capitalizing up to ₹63,249,977,010 from reserves and surplus as of December 31, 2025 (company filing).
MUTHOOTFIN
₹3,309.30
Muthoot Finance
7D
-5.6%
1Y
58.4%
Narrative Update • May 13

MUTHOOTFIN: Interim Dividend And Insurance Expansion Will Support Long Term Upside

Analysts have held their fair value estimate for Muthoot Finance steady at about ₹4,042 per share. They frame the slight adjustment in the discount rate and future P/E assumption as a fine tuning of risk and earnings expectations rather than a shift in the overall view on the stock.
500247
₹383.15
Kotak Mahindra Bank
7D
1.4%
1Y
-7.5%
Narrative Update • May 11

500247: Dividend And Governance Decisions Will Support Future Upside Potential

Analysts have reduced their fair value estimate for Kotak Mahindra Bank from ₹468.47 to ₹461.33, citing updated assumptions that include slightly softer revenue expectations, a modestly higher profit margin outlook, and a somewhat lower future P/E multiple. What's in the News Kotak Mahindra Bank's board has recommended a dividend of ₹0.65 per equity share with a face value of ₹1 for the year ended March 31, 2026, subject to shareholder approval (Key Developments).
BAJAJFINSV
₹1,772.00
Bajaj Finserv
7D
2.5%
1Y
-13.0%
POLICYBZR
₹1,830.00
PB Fintech
7D
11.8%
1Y
6.0%
RECLTD
₹333.00
REC
7D
-3.9%
1Y
-16.8%
Narrative Update • May 02

RECLTD: Higher Discount Rate Assumptions Will Support Bullish Long Term Outlook

REC's latest Narrative Update reflects a steady analyst fair value target at ₹500. The change is primarily rooted in higher assumed discount rates and a more conservative revenue growth outlook, which is partly offset by expectations of a higher future P/E multiple.
511243
₹1,518.85
Cholamandalam Investment and Finance
7D
-3.5%
1Y
-8.3%
ICICIAMC
₹3,137.40
ICICI Prudential Asset Management
7D
-4.2%
1Y
n/a