NSE Indices introduces Nifty Chemicals Index! Here’s how top stocks have performed

NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE), introduced the Nifty Chemicals Index on March 11, 2025. This new sectoral benchmark aims to track the performance of chemical stocks within the Nifty 500 universe, offering investors a structured reference point for the sector’s movement.

Structure and Composition

The Nifty Chemicals Index will comprise the top 20 chemical stocks, selected based on their six-month average free-float market capitalisation. NSE Indices emphasized that priority would be given to stocks available for trading in the derivatives segment at NSE.

To ensure balanced exposure, no single stock will have a weight of more than 33 percent, while the top three stocks will collectively hold a maximum weight of 62 percent. The index has been assigned a base date of April 1, 2005, with a base value of 1,000. It will be reconstituted semi-annually and rebalanced on a quarterly basis.

Implications for Investors

The launch of the Nifty Chemicals Index is expected to provide a key benchmark for asset managers and serve as a reference for passive investment instruments such as Exchange Traded Funds (ETFs), index funds, and structured financial products. With increasing investor interest in the chemicals sector, this index could serve as a vital tool for tracking industry trends and investment opportunities.

Leading Chemical Stocks by Market Capitalisation

While NSE Indices has not yet disclosed the final list of index constituents, here’s a look at some of the top chemical stocks by market capitalisation and their recent performance:

Pidilite Industries, the largest chemical stock by market capitalisation at ₹1.39 lakh crore, has seen a 3 percent decline in the past month, a 14 percent drop over the last three months, and a 4 percent loss in the past year.

Solar Industries, with a market cap of ₹88,854 crore, has shown a 9.6 percent gain in the last month, though it has declined 8 percent over the past three months. However, on a one-year basis, the stock has surged 28 percent.

SRF, valued at ₹86,621 crore, has recorded 3 percent growth in one month, a notable 27 percent increase over three months, and a 20 percent gain over the last year, indicating strong momentum.

Linde India, which has a market cap of ₹51,974 crore, added 5 percent in the last month, but suffered a 9 percent decline in the last three months. Over the past year, the stock has fallen 3.5 percent.

Coromandel International, with a market cap of ₹51,861 crore, has seen a 4.3 percent dip in the past month and a 1 percent drop over three months. However, the stock has delivered a strong 57.4 percent return over the last year.

PI Industries, valued at ₹50,710 crore, posted a 0.4 percent decline in the last month, a steep 17.5 percent drop in three months, and an 8 percent loss over the past year.

UPL, with a market cap of ₹45,885 crore, registered a 1.5 percent loss in the past month but recovered with an 11.6 percent gain over three months. Over the past year, the stock surged 34.4 percent.

Gujarat Fluorochemicals, valued at ₹41,086 crore, fell 2.6 percent in the past month and 14.5 percent over three months. However, the stock managed an 11.12 percent gain over the last year.

Deepak Nitrite, with a market cap of ₹26,467 crore, saw a sharp 11.9 percent decline in the last month, a 27.5 percent drop over three months, and an 8.8 percent loss in the past year, reflecting significant weakness.

Sumitomo Chemical, valued at ₹24,328 crore, gained 1 percent in the last month but saw an 8 percent decline over three months. Despite this, the stock delivered a 40 percent return in the past year.

Lastly, Chambal Fertilizers, with a market cap of ₹22,697 crore, has been a strong performer, delivering a 7 percent gain over the past month, another 7 percent increase in three months, and an impressive 58 percent return in the past year.

These stocks represent some of the key players in the chemical sector, and their performance highlights the diverse trends within the industry. While some companies have shown resilience and growth, others have faced challenges, making the sector an intriguing space for investors tracking the newly launched Nifty Chemicals Index.

As passive investment strategies gain traction, the index is likely to play a crucial role in shaping investment flows within the chemical sector.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.