Impact Of Large Cap Stocks On Movement Of Sectoral Index Of Nse

Indian pharmaceutical industry have attracted a colossal amount of FDI in recent times. The pharma stocks prices have been rising in the markets ahead of the adverse stock market conditions. This has made the pharma stocks to be considered as a defensive stocks in securities market. The study has made an attempt to find out the impact of select pharma stocks on pharma index for a period of five years starting from 2014 to 2019. An analytical research method is adopted in this study. The five pharma stocks viz., Biocon, Divis Labs,Glenmark Pharma, Piramal Enterprises and Sun Pharma selected for this study based on the market capitalisation. The day-to-day closing prices of the above select pharma stocks have considered for this study. Multiple regression is applied to find out the impact of pharma stocks on pharma index. The results revealed that all the pharma stocks included in this study have significantly influenced the pharma index of NSE except Piramal Enterprises for the period 2015-16 and Divis Lab in 2017- 18.