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Paper ID:10.55041/IJSREM.GSTCOS090

A STUDY ON THE PERFORMANCE EVALUATION OF SELECTED SECTORAL INDICES IN THE INDIAN STOCK MARKET

Stream/Area:

-

Subject:

-

Paper ID:

10.55041/IJSREM.GSTCOS090

Volume:

10 |

7 |

Jul 2026

Pages:

1-6

Publication Frequency:

Monthly (12 issues per year)

DOI
Digital Object Identifier
10.55041/ijsrem.GSTCOS090

License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.

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Authors

MSC

M. Sai Chandu

Student of MBA

CMR Institute of Technology, Hyderabad, Telangana, India.

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Mentors

DKSS

Dr. K. Swapna Sri

Associate Professor of MBA

CMR Institute of Technology, Hyderabad, Telangana, India.

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Abstract

This study analyses the performance of selected sectoral indices in the Indian stock market, namely NIFTY IT, NIFTY Bank, NIFTY Pharma, NIFTY FMCG, and NIFTY Auto, during the period 2015–2024. The main objective is to evaluate and compare the risk, return, and growth performance of these sectors and understand the influence of major macroeconomic factors such as inflation, interest rates, and GDP growth. The study uses statistical tools including mean return, standard deviation, CAGR, correlation, and regression analysis to assess sectoral performance. The findings indicate that the performance of sectoral indices differs significantly across industries. NIFTY IT generated higher returns but was associated with greater volatility, while NIFTY FMCG provided more stable returns with lower risk. The Banking, Pharmaceutical, and Automobile sectors showed moderate growth and varying levels of sensitivity to economic conditions. The study highlights the importance of sectoral analysis in understanding market behaviour and emphasizes the role of diversification in reducing investment risk and improving portfolio performance. The results can assist investors, researchers, and policymakers in making informed financial and investment decisions.

KEYWORDS

Sectoral Indices Risk-Return Analysis CAGR Stock Market Performance Macroeconomic Variables Portfolio Diversification.

Cite This Article

M. Sai Chandu, Dr. K. Swapna Sri, "A STUDY ON THE PERFORMANCE EVALUATION OF SELECTED SECTORAL INDICES IN THE INDIAN STOCK MARKET," International Journal of Scientific Research in Engineering and Management, vol. 10, no. 7, pp. 1-6, Jul 2026. https://doi.org/10.55041/ijsrem.GSTCOS090

Full Article/Conclusion

The study on the performance of selected NIFTY sectoral indices (IT, Bank, FMCG, Pharma, and Auto) from 2015 to 2024 shows clear differences in risk and return across sectors. NIFTY IT delivered the highest returns but with the highest risk, while NIFTY FMCG proved to be the most stable and efficient sector. NIFTY Bank showed steady and balanced performance, NIFTY Auto reflected cyclical growth with recovery in later years, and NIFTY Pharma recorded relatively weaker overall performance. The analysis also found that macroeconomic factors like GDP, inflation, and repo rate have only limited and sector-specific impact on returns.

References

1.        Bodie, Z., Kane, A., & Marcus, A. J. (2021). Investments (12th ed.). McGraw- Hill. 2.        Graham, B., & Dodd, D. (2008). Security analysis (6th ed.). McGraw- Hill. 3.        Gupta, S. P. (2020). Statistical styles (45th ed.). Sultan Chand & Sons. 4.        Malkiel, B. G. (2019). A, arbitrary walk down Wall Street (12th ed.). W. W. Norton. 5.        Markowitz, H. M. (1959). Portfolio selection Effective diversification of investments. Wiley. 6.        Pandian, P. (2013). Security analysis and portfolio operation. Vikas Publishing. 7.        Sharpe, W. F., Alexander, G. J., & Bailey, J. V. (1999). Investments (6th ed.). Prentice Hall. 8.        Siegel, J. J. (2014). Stocks for the long run (5th ed.). Mc 9.        Bodie, Z., Kane, A., & Marcus, A. J. (2021). Investments (12th ed.). McGraw- Hill. 10.     P. (2019). Investment analysis and portfolio operation (5th ed.). McGraw- Hill Education India.

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Publication Date

7/4/2026

Peer Review Type

Double-Blind Peer Review

Review Rounds: 2

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