NIFTY PHARMA

What is Nifty Pharma?

The Nifty Pharma Index is a sectoral index on the National Stock Exchange (NSE) that captures the performance of the pharmaceutical sector in the Indian economy. It includes 10 leading pharmaceutical companies listed on the NSE, representing a broad spectrum of activities in the pharma industry, from drug manufacturing to biotechnology. The index serves as a benchmark for investors seeking to track the health and performance of the Indian pharmaceutical sector.

The Nifty Pharma Index was launched on April 1, 2005, with a base date of January 1, 2001, and a base value of 1000. Since its inception, the index has grown significantly, reflecting the rapid development and global expansion of the Indian pharmaceutical industry. The Nifty Pharma Index is owned and managed by NSE Indices Limited, which ensures that it remains an accurate representation of the sector through regular reviews and adjustments.

Nifty Pharma Stocks Selection Criteria

The selection of companies in the Nifty Pharma Index is based on specific criteria to ensure the inclusion of the most relevant and liquid stocks. The eligibility criteria are as follows:

1. Listing on NSE: The company must be listed on the National Stock Exchange (NSE).

2. Inclusion in Nifty 500: The company must be part of the Nifty 500 Index.

3. Sector Classification: The company must belong to the pharmaceutical sector, including activities such as drug manufacturing, biotechnology, and related fields.

4. Trading Frequency: The stock must have a trading frequency of at least 90% over the past six months.

5. Listing History: The stock must have a listing history of at least six months. However, a recently listed company (IPO) can be included if it meets the above criteria for a period of three months.

6. Free-Float Market Capitalization: Stocks are weighted based on their free-float market capitalization, ensuring that only the shares available for public trading are considered.