List of Best Chemicals ETFs in India 2026
India’s chemical industry is one of the largest in the world, ranking 3rd in Asia and 6th globally. The sector contributes roughly 7% to India’s GDP and continues to expand on the back of strong demand for speciality chemicals, agrochemicals, and industrial chemicals. Chemical ETFs let investors tap into this growth by tracking indices like Nifty Chemicals, offering simple and low-cost access to India’s leading chemical companies.
Top Chemicals ETFs in 2026
Chemicals ETF Stock Screener
Chemicals ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape
Created by
@tickertapetickertapeShowing 1 - 2 of 2 results
last updated at 6:30 AM IST
| NameStocks (2)↓ | ↓Sub-SectorSub-Sector↓ | ↓Market CapMarket Cap↓ | ↓Close PriceClose Price↓ | ↓PE RatioPE Ratio↓ | ↓1D Return1D Return↓ | ↓1M Return1M Return↓ | ↓6M Return6M Return↓ | ↓1Y Return1Y Return↓ | ↓PB RatioPB Ratio↓ | ↓Return on EquityReturn on Equity↓ | ↓ROCEROCE↓ | ↓Dividend YieldDiv Yield↓ | ↓Debt to EquityDebt to Equity↓ | ↓Volatility vs NiftyVolatility vs Nifty↓ | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1. | Groww Nifty Chemicals ETFGROWWCHEM | EquityEquity | 7.277.27 | 28.5928.59 | -- | 0.530.53 | -1.21-1.21 | -0.14-0.14 | -0.14-0.14 | -- | -- | -- | -- | -- | 2.062.06 | |
| 2. | Kotak Nifty Chemicals ETFCHEMICAL | EquityEquity | 7.027.02 | 28.4628.46 | -- | -0.52-0.52 | -2.63-2.63 | -2.47-2.47 | -2.47-2.47 | -- | -- | -- | -- | -- | 1.471.47 |
Disclaimer: Please note that the above table is for informational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing. The data is derived from Tickertape Stock Screener and is subject to real-time updates.
Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.
Selection criteria: Based on publicly available information | Sorted by market capitalisation from highest to lowest.
Overview of Top Chemical ETFs in India
Kotak Nifty Chemicals ETF
Kotak Nifty Chemicals ETF is an exchange-traded fund that follows the Nifty Chemicals Index by investing in a basket of major Indian chemical companies. Launched in 2025, it gives direct exposure to speciality chemicals, agrochemicals, fertilisers, and industrial chemical businesses through one listed product.
What are Chemical ETFs?
Chemical ETFs in India are exchange-traded funds that invest in a basket of listed chemical and speciality-chemical companies. The ETF tracks the index's performance and trades on the stock exchange like a regular share.
How to Invest in Chemicals ETFs?
Here's how you can invest in Chemicals ETFs using Tickertape -
- Create an account on the Tickertape or log in if you already have one.
- Open Tickertape Stock Screener
- Filter Chemicals ETFs screener based on various parameters such as market cap, close price, past returns and more. You can review this data to evaluate each ETF’s performance trends and determine whether they align with your investment thesis.
- Once you’ve decided on an ETF, you can place a buy order through your brokerage account linked to Tickertape.
You can also stay updated on alerts and announcements for your favourite stocks with Tickertape Alerts. Further, you can analyse your overall portfolio and potential red flags in it by connecting it to Tickertape. Check out detailed analysis of your portfolio now!
Advantages of Investing in Chemicals ETFs in India
Exposure to a Fast-Growing Sector
India ranks as the sixth-largest chemical producer in the world and the third-largest in Asia, with the industry contributing about 7% to the country’s GDP. The sector is projected to grow to around $ 300 bn by 2028. These trends help Chemical ETFs capture broad industry growth.
Access to Diverse Chemical Companies
Chemical ETFs invest in a mix of companies across segments like speciality chemicals, agrochemicals, fertilisers, and industrial chemicals. This diversification reduces reliance on a single stock while tapping into the broader chemical value chain.
Benefit from Global Supply-Chain Shifts
Global companies are diversifying away from heavy reliance on one country for chemical production. This “China + 1” trend increases demand for Indian chemical makers, which can help Chemical ETFs benefit from increased global interest and expansion.
Lower Cost and Transparency
Like other ETFs, Chemical ETFs trade on exchanges and generally charge lower fees than active mutual funds. They also disclose holdings regularly, making it easy to see which companies the fund holds and how it tracks the underlying Nifty Chemicals Index.
Diversification Within Equities
Chemical ETFs provide diversification within the equity portion of a portfolio. Because chemicals serve many industries (like agriculture, automotive, construction, and healthcare), these ETFs offer exposure to multiple demand drivers in the economy rather than a narrow theme.
Receive real-time market alerts for timely decisions
Monitor your portfolio from the palm of your hands
Watchlist stocks and mutual funds to stay updated
Risks of Investing in Chemicals ETFs in India
Sector Cyclicality
The chemical industry moves in cycles driven by global demand, crude oil prices, and industrial production. When global manufacturing slows, speciality chemicals and basic chemicals often see weaker demand. India’s chemicals exports fell sharply during global slowdowns like in 2022–23, showing how sensitive the sector can be.
Raw Material Price Volatility
Many Indian chemical companies depend on crude oil and its derivatives. Sharp movements in crude prices can increase production costs. For example, crude price spikes in 2022 reduced margins across several speciality chemical exporters. Chemical ETFs feel this impact because they mirror the same companies.
Export Dependence
India exports chemical products to more than 150 countries, with major markets being the US, China, and Europe. Any drop in exports affects the sector. Since Chemical ETFs track the sector index, they also experience this pressure.
Environmental and Compliance Risks
Chemical production involves stringent environmental regulations. Any tightening of pollution norms, safety standards, or compliance costs can affect margins. Plants have faced shutdowns or production cuts due to regulatory issues, which impact companies in the index.
Currency Fluctuation
A large portion of speciality chemical revenue comes from exports billed in USD or EUR. Volatility in the USD–INR rate directly affects earnings, making the ETF sensitive to currency movements.
Factors to Consider Before Investing in Chemicals ETFs
Sector Demand Cycles
The chemical industry depends on demand from multiple end-use sectors such as agriculture, pharmaceuticals, FMCG, and manufacturing. Shifts in these sectors directly influence chemical production volumes and pricing, which in turn affect the ETF.
Raw Material Costs
Many chemical products rely on crude oil derivatives and other key feedstocks. Changes in global commodity prices can alter production costs and margins across the sector, making it important to track these inputs.
Export Exposure
A significant share of India’s chemical output is exported. Movements in global demand, trade policies, and international supply chains influence export earnings and play a major role in how the index performs.
Currency Movements
Speciality chemical and bulk chemical producers often earn revenue in foreign currencies. Fluctuations in exchange rates impact profitability and can introduce volatility into Chemical ETFs.
Index Composition
Chemical ETFs track a defined index, usually led by a few large companies. Understanding the weightage and structure of the index helps clarify which companies influence ETF performance the most.
Regulatory Environment
Environmental, safety, and compliance standards are crucial in chemical manufacturing. Changes in regulations can affect operating costs, capacity utilisation, and overall sector performance.
Taxation on Chemicals ETFs
The taxation of Chemicals ETFs depends on the investment tenure. Short-term and long-term gains are subject to different tax treatment.
| Holding Period | Tax Treatment |
|---|---|
| Short-Term (< 12 months ) | Gains taxed at a flat rate of 20% (increased from the previous 15%). |
| Long-Term (> 12 months) | Gains taxed at 12.5%. Exemption applies to the first ₹1.25 Lakh of long-term gains across all equity assets in a financial year. |
Conclusion
Chemical ETFs in India give straightforward and cost-efficient access to the country’s expanding chemicals industry. They bundle several leading chemical and specialty-chemical companies into one exchange-traded product, making it easier to follow sector trends with transparency and lower costs. At the same time, these ETFs remain sensitive to shifts in global demand, input prices, export dynamics, and policy changes.
Considering factors such as sector cycles, index design, fund expenses, and liquidity can help set clearer expectations before investing. Using tools like the Tickertape Stock Screener, which offers over 200 filters, enables a deeper comparison of available Chemical ETFs and helps identify the option that best fits a specific investment approach.
Popular Stock Collections
Popular Mutual Fund Collections
Frequently Asked Questions on Chemicals ETFs
What is a chemical ETF?
A chemical ETF is an exchange-traded fund that invests in a basket of listed chemical and specialty-chemical companies. It follows a defined index and offers a simple way to track the chemical industry through one product.Is there a chemical sector ETF in India?
Yes, there is Kotak Nifty Chemicals ETF follows the Nifty Chemicals index. This fund gives exposure to major companies across specialty chemicals, agrochemicals, and industrial chemicals.Disclaimer: This information is for educational purposes only and should not be considered investment advice.
How does a chemical ETF work?
A chemical ETF mirrors the movement of its underlying index, such as Nifty Chemicals, by holding the same companies in similar proportions. It trades on the exchange like a stock and provides transparent sector exposure.Is a chemical ETF a good investment?
A chemical ETF India option can offer low-cost access to a fast-growing sector that serves multiple industries. However, its suitability depends on sector cycles, raw material costs, global demand, and regulatory conditions.Disclaimer: This information is for educational purposes only and should not be considered investment advice.
What does a chemical sector ETF invest in?
A chemical sector ETF in India invests in companies involved in speciality chemicals, intermediates, agrochemicals, dyes, pigments, and other chemical segments that form part of the index.How can chemical ETFs be compared?
Investors often compare chemical ETFs based on expense ratios, liquidity, index composition, and tracking efficiency. Tools like the Tickertape Stock Screener, with over 200 filters, help analyse different chemical ETF options clearly.How to sell chemicals ETFs?
Chemicals ETFs can be sold on the stock exchange using your demat account. You need to place a sell order during trading hours, and the proceeds are credited after settlement.
