Hi,
Nifty is a free float market cap weighted index. For calculating PE of the index, we need price / eps of the index. So we need to calculate eps of the index here. You can calculate that by taking free float market capitalization weighted share of eps of all the underlying 50 stocks. Divide index price by this eps and you will get PE of the index.
You can refer to this link (www.investopedia.com/terms/f/freefloatmethodology.asp) for more knowledge on this.
Apologies if I am not clear here. Answering this in a hurry
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