How many stocks are there in the Nifty Pharma Index?

Nifty Pharma Index has 20 stocks like Sun Pharmaceutical Industries, Dr. Reddy's Laboratories, and Cipla Ltd.

How frequently is the Nifty Pharma Index rebalanced?

The Nifty Pharma Index is rebalanced every 6 months with the cut-off dates being 31 January and 31 July of each year.

Which company tops in Nifty Pharma weightage stocks?

On 31 July 2024, Sun Pharmaceutical Industries had the maximum weightage of 24.70%, followed by Dr. Reddy's Laboratories at 10.94%.

What is Nifty Pharma's performance in the last 12 months?

As of 31 July 2024, the index had returned 46.15% over the last 1 year including dividends.

Can we trade directly in the Nifty Pharma index?

Investors can place their bets using ETFs and Mutual Funds. In this regard, Nippon India Nifty Pharma ETF stands out as it tracks the Nifty Pharma Index. Other options include Healthcare ETFs from ICICI and Axis.

Nifty Pharma Stocks List With Weightage in 2024

Mahesh Yadav

May 2, 2023

The Nifty Pharma Index captures the performance of the pharmaceutical sector. The Index comprises 20 companies listed on the National Stock Exchange of India (NSE).

In this article, we have compiled a Nifty Pharma stocks list with weightage which is periodically updated. Nifty Pharma companies index can be used to benchmark fund portfolios, and launching of index funds, ETFs, and structured products.

What is the Nifty Pharma index?

The Nifty Pharma Index is designed to reflect the behavior and performance of the companies that are engaged in the manufacturing of pharmaceuticals and biotechnology companies. Effective 30 September 2021, the index comprises a maximum of 20 stocks. The index has a base date of 1 January 2001 indexed to a base value of 1000 but it was launched only in July 2005.

Nifty Pharma Companies Re-Balancing

Constituent companies in the Nifty Metal Index are re-balanced on a semi-annual basis. The cut-off date is 31 January and 31 July of each year, i.e. for semi-annual review of indices, average data for 6 months ending the cut-off date is considered.

A prior notice of at least four weeks is given to the market from the date of the change. As a result, changes made on 31 January will be effective from 31 March.

Index Governance

A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee.

Nifty Pharma Index: Key Drivers

Despite strong domestic demand and a fairly diversified portfolio, the Pharma industry in India involves cycles, often running over several years. This is largely because the industry is heavily regulated and India exports nearly 40% of its pharma production, making it one of the largest suppliers of generic drugs to the world. As a result, companies often find it difficult to preserve their balance sheets amid ever-stringent regulations in developed markets. Out of the top companies in this industry, only a few such as Divi’s Laboratories have demonstrated consistent performance.

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Nifty Pharma Weightage

In terms of weightage, the top companies in the Nifty Pharma Stocks list are Sun Pharmaceutical Industries 24.70%, Dr. Reddy’s Laboratories 10.94%, Cipla Ltd 11.78%, and Divi’s Laboratories 8.35%.