Got a hankering for stocks with the power to heal? That’s Pharma stocks! Think cutting-edge meds and life-saving breakthroughs. But wait! Like any good medicine, there’s a dosage of risk. Peek behind the curtain, explore what’s brewing, and understand the bumps before you invest. Remember, a savvy investor is the healthiest one! 


In this blog, let’s learn about popular pharma stocks and more!

India’s Pharma Dominance 

The Economic Survey for 2022-23 states that India stands 3rd globally in making pharmaceutical products in quantity and 14th in terms of their value. India is the biggest contributor to generic medicines worldwide, holding a 20% share in the global supply volume. Moreover, it holds the top position as a vaccine manufacturer, boasting a 60% market share worldwide.

What are NIFTY Pharma Stocks?

The Nifty Pharma Index tracks how well pharmaceutical companies are doing. It includes 20 companies listed on the National Stock Exchange of India (NSE). Calculated using the free float market capitalization method, the index shows the overall value of these stocks relative to a base market capitalization. The Nifty Pharma Index is used to compare fund portfolios or create index funds, ETFs, and structured products.

List of Nifty Pharma Stocks in India

Here is a rundown of Nifty Pharma stocks, with details on their market capitalization and stock prices.

Nifty Pharma StocksMarket Capitalization (in Cr)Stock Price (closing of 26th Feb 2024)
Abbott India Ltd.₹61,002₹28,458.60
Alkem Laboratories Ltd.₹64,818₹5,061.85
Aurobindo Pharma Ltd.₹61,348₹1,041.90
Biocon Ltd.₹32,782₹272.95
Cipla Ltd.₹1,18,392₹1,469.85
Divi’s Laboratories Ltd.₹96,846₹3,577.35 
Dr.Reddy’s Laboratories Ltd.₹1,07,464₹6,440.75 
Gland Pharma Ltd.₹30,654₹1,830.60 
GlaxoSmithKline Pharmaceuticals Ltd.₹37,919₹2,171.90 
Glenmark Pharmaceuticals Ltd.₹25,400₹927.65 
Granules India Ltd.₹11,310₹470.00 
Ipca Laboratories Ltd.₹30,894₹1,214.50 
Laurus Labs Ltd.₹21,481₹395.45 
Lupin Ltd.₹73,582₹1,604.70 
NATCO Pharma Ltd.₹18,407₹1,026.05 
Pfizer Ltd.₹20,635₹4,400.20
Sanofi India Ltd.₹21,038₹9,041.70
Sun Pharmaceutical Industries Ltd.₹3,74,596₹1,556.95
Torrent Pharmaceuticals Ltd.₹88,908₹2,624.10
Zydus Lifesciences Ltd.₹90,471₹942.55

Note: The above pharma stock data is from February 26, 2024. For the latest updates on stock prices and market trends, check out the share.market stocks page today!

Key Considerations Before Investing in Pharma Stocks in India

Use these parameters to access pharmaceutical stocks:

  1. Domestic and Global Demand: Analyze the healthcare landscape, population demographics, and disease prevalence to gauge the growth potential
  1. Research and Development Investments: Assess a company’s commitment to research, ensuring they invest wisely in promising areas for new drug development
  1. Regulatory Environment and Government Policies: Stay informed on regulatory changes influencing a company’s ability to launch new products
  1. Intellectual Property Rights and Patent Expirations: Examine a company’s patent portfolio to understand the impact of expirations on revenue

Conclusion

Pharma stocks, like medicine, hold promise and risk. Explore before investing, just like checking the side effects. India shines globally in pharmaceuticals, but understanding these stocks requires tracking market trends and rules. Be a wise investor for a healthy financial journey.

FAQs

What are Pharma Stocks?

Pharma stocks refer to shares of pharmaceutical companies traded on the stock market. These companies are involved in the research, development, production, and distribution of pharmaceutical products and drugs.

Are there any risks associated with investing in pharma stocks?

Yes, investing in pharma stocks carries risks such as regulatory challenges, clinical trial outcomes, and market competition. It’s crucial for investors to conduct thorough research and stay informed about industry dynamics to make informed decisions.

When was the inception of the Nifty Pharma index?

The Nifty Pharma index was launched on July 1, 2005.