What is a pharma ETF?

A pharma ETF is an exchange-traded fund that invests in a basket of pharmaceutical companies. It tracks a defined index, such as the Nifty Pharma Index, and offers easy, low-cost exposure to India’s pharmaceutical space through a single listed product.

What is the best pharmaceutical ETF?

There is no single “best” option because performance depends on market cycles, costs, liquidity, and index structure. Reviewing the Nifty Pharma ETF list helps identify which pharma sector ETF aligns with your investment thesis. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

Is there any pharma ETF in India?

Yes, in India, there are a few pharma-focused ETFs, with the most prominent one being the Nippon India Nifty Pharma ETF, which mirrors the Nifty Pharma Index and provides exposure to leading drug manufacturers. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

Is pharma ETF a good investment?

A pharma ETF offers low-cost access to India’s pharmaceutical sector and reflects the performance of major companies. However, its suitability depends on sector trends, regulatory developments, export dynamics, and the investment horizon. Like any sector fund, it carries concentration and regulatory risks. Disclaimer: This information is for educational purposes only and should not be considered investment advice.

How is Nippon India Nifty Pharma ETF performing?

As of 13 January 2026, the Nippon India Nifty Pharma ETF has delivered 59.42% returns over five years. Its performance closely follows the earnings and movements of the Nifty Pharma Index.

What does a pharma ETF invest in?

A pharma ETF invests in listed pharmaceutical companies, including drug makers, formulation manufacturers, API producers, and select healthcare-related businesses, depending on the index it tracks.

How is a pharma ETF different from a healthcare sector ETF?

A pharma ETF focuses mainly on pharmaceutical companies. A healthcare ETF or healthcare industry ETF covers a wider range of businesses such as hospitals, diagnostics, medical devices, and healthcare service providers.

Where can I compare Pharma ETFs?

Pharma ETFs can be compared based on index methodology, AUM, expense ratio, and liquidity. Tools like the Tickertape Stock Screener, with over 200 filters, help compare pharma ETF India options clearly and efficiently.

How to sell pharma ETFs?

Pharma ETFs can be sold on the exchange via your demat account by submitting a sell order. The execution occurs at market price, and proceeds are credited after settlement.

List of Best Pharma ETFs in India 2026

India is one of the world’s largest medicine suppliers, contributing 20% of global generics and 60% of global vaccines. The domestic market is also expanding, growing 8% in 2024 and expected to reach $ 130 bn by 2030. Pharma ETFs give easy and low-cost access to this growing sector by tracking indices like the Nifty Pharma Index.

Top Pharma ETFs in 2026

Pharma ETF Stock Screener

Pharma ETF Stock Screener: Analyse & Filter Indian Stocks on Tickertape

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	NameStock (1)↓	↓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.	Nippon India Nifty Pharma ETF PHARMABEES	EquityEquity	1,031.681,031.68	22.7022.70	--	-0.18-0.18	-2.58-2.58	-0.18-0.18	2.582.58	--	--	--	--	--	1.271.27

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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.

Overview of Top Pharma ETFs in India

Nippon India Nifty Pharma ETF

Nippon India Nifty Pharma ETF is an exchange-traded fund that follows the Nifty Pharma Index. It buys the same major pharma stocks in the index, such as Sun Pharma, Cipla, Dr. Reddy’s, Divi’s Labs, and Lupin. It trades on the stock exchange like a regular share, so you get easy and low-cost access to a diversified basket of pharma companies through one investment.

What are Pharma ETFs?

Pharma ETFs in India are exchange-traded funds that invest in a basket of Indian pharmaceutical and healthcare companies. They track sector-specific indices like the Nifty Pharma Index or the Nifty Healthcare Index and trade on the stock exchange like any other stock.

How to Invest in Pharma ETFs?

Here's how you can invest in Pharma ETFs using Tickertape -

Create an account on the Tickertape or log in if you already have one.
Open Tickertape Stock Screener
Filter Pharma 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 Pharma ETFs in India

Strong Long-Term Record

The Nifty 50 index has shown a steady long-term trend, delivering about 12–14% CAGR across different periods. As of 13th January 2026, the index has also generated 76.67% total returns over the last five years, highlighting its historical performance through various market cycles.

Broad Market Exposure

A Nifty 50 ETF spreads your money across 50 of India’s largest companies. These companies cover many major sectors like banking, IT, energy, and FMCG, which reduces the impact of any single stock on the overall returns.

Low Costs

These ETFs track the Nifty 50 index, so they don’t need active fund managers. This keeps expenses low. Many Nifty 50 ETFs charge expense ratios well below 0.10%, which helps more of the returns stay with you over time.

Simple and Transparent

Nifty 50 ETFs hold the same 50 stocks as the index, and the exact weights of each stock are publicly disclosed. Holdings are updated regularly, which makes the ETF structure clear and easy to track across market cycles.

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Risks of Investing in Pharma ETFs in India

Market Volatility

Nifty 50 ETFs mirror the index, so any broad market fall immediately reflects in the ETF price. Global events, inflation data, interest rate changes, or sector-specific corrections in heavyweights like financials or IT can cause short-term swings.

Large-Cap Bias

These ETFs include only the 50 largest listed companies. This means the fund does not capture rallies in mid-cap or small-cap segments, which have at times delivered higher category-level returns during strong market phases.

No Outperformance Possibility

Since these ETFs replicate the index, they match its movement and do not aim to beat it. In years when mid-caps or small-caps outperform large-caps, the Nifty 50 may lag broader equity categories, and the ETF will reflect the same pattern.

Dependence on Index Composition

The ETF’s performance depends on how the Nifty 50 constituents behave. If high-weight sectors like financial services, IT, or oil & gas face pressure, it affects the index even if other sectors are stable or rising.

Tracking Error Impact

Although tracking error is usually low, it can widen during periods of high volatility, index rebalancing, or when cash positions rise within the ETF. This may create a small gap between the ETF’s return and the Nifty 50’s return.

Factors to Consider Before Investing in Pharma ETFs

Expense Ratio

Nifty 50 ETFs charge different expense ratios, and even small differences matter over time. A lower expense ratio reduces the cost of managing the fund and helps it stay closer to the index’s actual returns.

Tracking Error

Tracking error measures how much the ETF’s returns deviate from the Nifty 50. Fund expenses, cash positions, and rebalancing timing all influence this number. A lower tracking error shows that the fund is replicating index movements more accurately.

Sector Concentration in the Index

The Nifty 50 gives significant weight to financial services, IT, oil & gas, and consumer sectors. Sharp moves in these heavy sectors have a bigger impact on the index. Understanding these weights helps set expectations for how the index may behave during sector-specific cycles.

Rebalancing Practices

Nifty 50 ETFs rebalance whenever the index changes its stock list or updates weights. The timing and execution of rebalancing influence tracking error. Efficient rebalancing keeps the fund aligned with the benchmark during index changes.

Taxation on Pharma ETFs

Pharma ETFs attract capital gains tax based on how long the investment is held. Short-term and long-term gains are taxed separately.

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

Pharma ETFs in India offer a simple way to track the pharmaceutical sector without picking individual stocks. They provide transparent exposure to leading drug makers and reflect broader sector trends, but they also carry risks such as regulatory changes, export pressure, and currency movement. Before investing in a pharma ETF, it helps to review sector cycles, index composition, and costs. Checking options in the Nifty Pharma ETF list and comparing them using tools like the Tickertape Stock Screener can make it easier to understand which pharma ETF India aligns with a specific investment view.

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Frequently Asked Questions on Pharma ETFs

What is a pharma ETF?
A pharma ETF is an exchange-traded fund that invests in a basket of pharmaceutical companies. It tracks a defined index, such as the Nifty Pharma Index, and offers easy, low-cost exposure to India’s pharmaceutical space through a single listed product.
What is the best pharmaceutical ETF?
There is no single “best” option because performance depends on market cycles, costs, liquidity, and index structure. Reviewing the Nifty Pharma ETF list helps identify which pharma sector ETF aligns with your investment thesis.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
Is there any pharma ETF in India?
Yes, in India, there are a few pharma-focused ETFs, with the most prominent one being the Nippon India Nifty Pharma ETF, which mirrors the Nifty Pharma Index and provides exposure to leading drug manufacturers.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
Is pharma ETF a good investment?
A pharma ETF offers low-cost access to India’s pharmaceutical sector and reflects the performance of major companies. However, its suitability depends on sector trends, regulatory developments, export dynamics, and the investment horizon. Like any sector fund, it carries concentration and regulatory risks.
Disclaimer: This information is for educational purposes only and should not be considered investment advice.
How is Nippon India Nifty Pharma ETF performing?
As of 13 January 2026, the Nippon India Nifty Pharma ETF has delivered 59.42% returns over five years. Its performance closely follows the earnings and movements of the Nifty Pharma Index.
What does a pharma ETF invest in?
A pharma ETF invests in listed pharmaceutical companies, including drug makers, formulation manufacturers, API producers, and select healthcare-related businesses, depending on the index it tracks.
How is a pharma ETF different from a healthcare sector ETF?
A pharma ETF focuses mainly on pharmaceutical companies. A healthcare ETF or healthcare industry ETF covers a wider range of businesses such as hospitals, diagnostics, medical devices, and healthcare service providers.
Where can I compare Pharma ETFs?
Pharma ETFs can be compared based on index methodology, AUM, expense ratio, and liquidity. Tools like the Tickertape Stock Screener, with over 200 filters, help compare pharma ETF India options clearly and efficiently.
How to sell pharma ETFs?
Pharma ETFs can be sold on the exchange via your demat account by submitting a sell order. The execution occurs at market price, and proceeds are credited after settlement.

Disclaimer: This article is for informational purposes only. The content of the article including securities/investment products mentioned if any, should not in any manner be construed as an investment advice, recommendation, offer, solicitation to buy/hold/sell any securities/investment products. The securities quoted if any, are for illustration only and are not recommendatory. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Please consult a SEBI-registered financial advisor before investing.