How to Invest in NIFTY Pharma Index?

The Indian pharmaceutical sector has grown by leaps and bounds in recent years. The COVID-19 epidemic has stimulated investments and growth in India’s pharmaceutical industry. With such a rapidly expanding sector on our hands, it is critical to have a benchmarking tool capable of tracking and measuring the sector’s success.

In this ever-growing sector, don’t you think it is necessary that we know everything about this index and also the route you can take to invest in it?

What is the NIFTY Pharma Index?

The Nifty Pharma Index is another sectoral index that includes ten of the major pharmaceutical businesses. These businesses are involved in the discovery, development, manufacture, and sale of pharmaceuticals and other products. In addition to being utilized for benchmarking, fund firms use Nifty Pharma to develop ETFs and mutual products.

How to Invest in NIFTY Pharma?

The National Stock Exchange, like many other sectoral indices, has not offered any Nifty Pharma derivative contracts. This practically means that you cannot trade directly in the index, as you would with the Nifty Bank Index. However, there are other index mutual funds that are built with the same elements as the Nifty Pharma Index in order to replicate its performance.

However, once you know the tip of the NIFTY pharma index, it is only right you know the whole thing. Let’s look at what NIFTY Pharma holds.

Components of the NIFTY Pharma Index

Let’s take a quick look at these companies and their main lines of operation.

1. a) Dr. Reddy’s Lab

• Reddy’s Laboratories is a pharmaceutical firm situated in Telangana that was founded in 1984.
• The company has a diverse product range that includes generic pharmaceuticals, over-the-counter (OTC) drugs, Active Pharmaceutical Ingredients (APIs), and unique formulations.

1. b) Cipla

• Cipla, a Mumbai-based pharmaceutical company founded in 1935, is one of the most well-known in India.
• Cipla is present in approximately nine countries other than India.
• The company produces several important pharmaceuticals that are used to treat a wide range of ailments and disorders, including arthritis, diabetes, depression, respiratory and cardiovascular disease, and even weight control.

1. c) Sun Pharmaceutical Industries

• Sun Pharmaceutical Industries, founded in 1983, manufactures, distributes, and sells pharmaceuticals and pharmaceutical formulations.
• The company sells its items in both India and the United States.
• Sun Pharmaceutical Industries operates more than 40 manufacturing facilities around the world.

1. d) Divi’s Lab

• Divi’s Laboratories, another Telangana-based pharmaceutical company, was founded in 1990.
• The company produces nutraceutical ingredients, generic pharmaceuticals, Active Pharmaceutical Ingredients (APIs), and other pharmaceutical intermediates.

1. e) Lupin

• Lupin, a Mumbai-based pharmaceutical firm, was founded in 1968.
• Lupin focuses on OTC medications, APIs, biotech, and specialist drugs used to treat ailments such as asthma, TB, and cardiovascular disease.
• The company is one of the largest in the generic pharmaceutical industry in terms of revenue creation.

1. f) Biocon

• Biocon, which has been in operation since 1978, is one of India’s largest pharmaceutical corporations.
• Diabetes, cancer, and immunology are three important therapeutic areas in which Biocon is now active.
• The company’s medications and APIs are distributed and sold in over 120 countries, including India.

1. g) Aurobindo Pharma

• Aurobindo Pharma was founded in 1986, with its headquarters in Hyderabad.
• The company produces both generic medications and Active Pharmaceutical Ingredients.
• Aurobindo Pharma has ten formulation facilities, eight of which are in India, one in the United States, and one in Brazil.

1. h) Alkem Lab

• Alkem Laboratories is a pharmaceutical firm based in Mumbai that was founded in 1973.
• The company’s main lines of operation are generic pharmaceuticals, over-the-counter drugs, vaccinations, diagnostics, contact lenses, and even animal health.
• Apart from India, Alkem Laboratories is present in ten other countries throughout the world.

1. i) Torrent Pharma

• Torrent Pharmaceuticals, founded in 1959, is a subsidiary of the Torrent Group of enterprises.
• Aside from manufacturing a wide range of pharmaceuticals, the firm is also heavily involved in research and development activities through its Ahmedabad location.

1. j) Cadila Healthcare

• Cadila Healthcare, another significant pharmaceutical firm based in Ahmedabad, was founded in 1952.
• The company is now ranked 100th on the Fortune India 500 list for 2020.
• Cadila Healthcare has excellent manufacturing and research, and development capabilities that are continually working to develop new treatments to combat fatal diseases.

Conclusion

The Nifty Pharma Index is intended to reflect the behaviour and performance of India’s pharmaceutical sector, and when you are part of the investing lot of the country – know the roundabouts of every sector, including this one.