A comparative analysis of Nifty Pharma with other sectoral indices on the NSE

Published on: Wed Mar 01 2023

A comparative analysis of Nifty Pharma with other sectoral indices on the NSE

Nifty Pharma is a stock index that measures/tracks the performance of India's pharmaceutical industry. It is, however, not the only sectoral index traded on the National Stock Exchange (NSE). Other sectoral indices include the Nifty Bank, Nifty IT, and Nifty FMCG, among others. In this blog post, we will compare Nifty Pharma to some of the other sectoral indices traded on the NSE.

Nifty Pharma vs. Nifty Bank:

Nifty Bank is a stock index that represents the banking sector in India. Nifty Bank outperformed Nifty Pharma over the last year, with a one-year return of more than 30%, compared to Nifty Pharma's one-year return of around 16% as of February 2023. This can be attributed/contributed to India's banking sector's strong performance, which has benefited from a revival in credit growth and an overall improvement in the economy.

Nifty Pharma vs. Nifty IT:

Nifty IT is a stock index that represents the information technology sector in India. Nifty IT has outperformed Nifty Pharma over the last year, with a one-year return of around 33%, compared to Nifty Pharma's one-year return of around 16%. This can be attributed/contributed to the strong growth in the IT sector in India, which has benefited from the increased adoption of digital technologies across industries.

Nifty Pharma vs. Nifty FMCG:

Nifty FMCG is a stock index that represents/shows the fast-moving consumer goods sector in India. Nifty FMCG has underperformed Nifty Pharma over the last year, with a one-year return of around 13%, compared to Nifty Pharma's one-year return of around 16%. This can be attributed to the challenges faced by the FMCG sector in India, including rising input costs and supply chain disruptions.

It is important/essential to note that while the performance of sectoral indices can provide insights into the performance of specific sectors, it is not a guarantee of returns for individual stocks within those sectors. Moreover, sectoral indices can be influenced by a variety of factors, including macroeconomic conditions, government policies, and regulatory changes.

In conclusion, a comparative analysis/study of Nifty Pharma with other sectoral indices on the NSE highlights the performance of the pharmaceutical sector in India relative to other sectors. While Nifty Pharma has performed well over the last year, it has underperformed some of the other sectoral indices, such as Nifty Bank and Nifty IT. Investors should conduct thorough research and analysis before making any investment decisions and consider diversifying their portfolios across sectors to manage risk.

Returns are subject to market risk.

Past performance do not assure future returns.

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