What is Nifty Pharma
NIFTY Pharma Index captures the performance of the pharmaceutical sector. The Index comprises of 20 companies listed on National Stock Exchange of India (NSE). NIFTY Pharma Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value. NIFTY Pharma Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Nifty Pharma Stocks List and its Weightage (31/10/2024)
Sl No. | Company Name | Industry | Symbol | Weightage |
1 | Sun Pharma. | Healthcare | SUNPHARMA | 25.09% |
2 | Cipla Ltd. | Healthcare | CIPLA | 10.72% |
3 | Dr. Reddy's | Healthcare | DRREDDY | 9.77% |
4 | Divi's Laboratories Ltd. | Healthcare | DIVISLAB | 9.40% |
5 | Lupin Ltd. | Healthcare | LUPIN | 6.62% |
6 | Aurobindo Pharma Ltd. | Healthcare | AUROPHARMA | 4.91% |
7 | Alkem Laboratories Ltd. | Healthcare | ALKEM | 3.79% |
8 | Torrent Pharma. Ltd. | Healthcare | TORNTPHARM | 3.72% |
9 | Glenmark Pharma. Ltd. | Healthcare | GLENMARK | 3.21% |
10 | Mankind Pharma Ltd. | Healthcare | MANKIND | 3.16% |
11 | Zydus Lifesciences Ltd. | Healthcare | ZYDUSLIFE | 3.15% |
12 | Ipca Laboratories Ltd. | Healthcare | IPCALAB | 2.71% |
13 | Laurus Labs Ltd. | Healthcare | LAURUSLABS | 2.43% |
14 | Abbott India Ltd. | Healthcare | ABBOTINDIA | 1.90% |
15 | Biocon Ltd. | Healthcare | BIOCON | 1.79% |
16 | J.B. Chemicals & Pharma. | Healthcare | JBCHEPHARM | 1.76% |
17 | Gland Pharma Ltd. | Healthcare | GLAND | 1.65% |
18 | Ajanta Pharmaceuticals Ltd. | Healthcare | AJANTPHARM | 1.62% |
19 | NATCO Pharma Ltd. | Healthcare | NATCOPHARM | 1.60% |
20 | Granules India Ltd. | Healthcare | GRANULES | 1.04% |
Nifty Pharma Index Fund and ETF
Sl No. | Name | Index Fun/ETF |
1 | ICICI Prudential Nifty Pharma Index Fund | Fund |
2 | Nippon India Nifty Pharma ETF | ETF |
How Nifty Pharma Stocks are Selected
Eligibility Criteria for Selection of Constituent Stocks
i. Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular sector within NIFTY 500 falls below 20, then deficit number of stocks shall be selected from the universe of stocks ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data used for index rebalancing of NIFTY 500.
ii. Companies should form a part of pharmaceutical sector.
iii. The company's trading frequency should be at least 90% in the last six months.
iv. The company should have a listing history of 6 months. A company, which comes out with an IPO will be eligible for inclusion in the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
v. Final selection of 20 companies shall be done based on the free-float market capitalization of the companies.A preference shall be given to companies that are available for trading in NSE’s Futures & Options segment at the time of final selection.
vi. Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.
Index Re-Balancing:
Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
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.
