Nifty Pharma

Launched in July 2005, the Nifty Pharma index reflects the performance of the pharmaceutical sector. The index consists of 20 stocks listed on the National Stock Exchange (NSE). The stocks or constituents of this index are reviewed every six months. One of the important criteria for being a part of this index is that the pharma company should be from the Nifty 500 universe. This index is used to benchmark fund portfolios related to the pharmaceutical space. The Nifty Pharma index is also used for launching index funds, and exchange traded funds (ETFs) and structured products. The top five constituents of this index are Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla, Divi’s Laboratories and Laurus Labs. Meanwhile, the index has delivered a total return of 13.5% annually since its inception.