My Analysis of the Nifty Chemicals Index
I have been monitoring the Nifty Chemicals Index that is a critical indicator of how the chemicals sector in India is performing. The index contains a list of 20 stocks which are the highest in the remaining Nifty 500 universe and are under the basic industries group.
The selection is based on a 6-month average free-float market capitalization, But with a definite inclination towards the stocks, which are also listed in the derivatives (F&O) segment. This, I think, is an intelligent filter of securing liquidity. I am taking the Total Returns Index variant of this analysis, because it adds back dividend returns to give us the whole or overall performance story.
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Key Performance & Fundamental Metrics
These are the main points that I learned about index vital statistics. Long-term returns of P/E ratio are also rather admirable, however the high P/E ratio means that the market already foresees a notable increase of growth in this industry.
Total Return (1 Year)
Total Return (5 Yr CAGR)
P/E Ratio
P/B Ratio
Dividend Yield
Beta (vs NIFTY 50)
Index Performance Visualized
To better understand the index, I've visualized its historical performance and its current composition. The long-term growth trajectory is remarkable, as seen in the historical chart. The constituents chart highlights that the index is quite top-heavy, with Pidilite, SRF, and Solar Industries forming a significant portion of its weight.
Historical Performance (Since 2006)
Top 10 Constituents by Weightage (%)
1-Year Return vs. Other Sectors (%)
Nifty Chemical Stocks List
Here is the full list of the 20 companies that make up the Nifty Chemicals Index, complete with their latest market data. This table is fully interactive—you can search for a specific company or sort any column by clicking its header to dive deeper into the data. (price source: fetch from the yfinance)
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Company Name | Symbol | Price (INR) 22 June, 2025 | Market Cap | P/E Ratio | Volume |
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My Notes on the Index Methodology
The rules for constructing this index are straightforward and focus on capturing the most significant players in the sector.
- Eligibility Universe: Stocks must be part of the Nifty 500 index and belong to the Chemicals sector.
- Selection: The index comprises a maximum of 20 stocks, chosen based on their free-float market capitalization.
- Weight Capping: To ensure diversification, individual stock weights are capped at 33%, and the cumulative weight of the top 3 stocks is capped at 62%.
- Rebalancing: The index is reconstituted semi-annually, but what's interesting is that it is rebalanced quarterly to maintain the weightage caps.
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