The scorecard
Information technology and pharmaceuticals are India's two big export-earning sectors, and both sell mostly to the United States. They are still driven by different things: IT by client technology budgets and the dollar, pharma by drug approvals, pricing and patent cycles.
Over 14 calendar-year periods from the end of 2012 to 16 October 2026, Nifty IT finished ahead of Nifty Pharma 6 times and behind 8 times. Nifty IT compounded 12.9% a year over the period and Nifty Pharma 11.1%; Nifty IT is up 5.30 times and Nifty Pharma 4.27 times. Nifty Pharma won more of the individual years (8 of 14), but Nifty IT won by more. All figures are price-index returns, without dividends, using the last close of each year.
Year by year
| Year | Nifty IT | Nifty Pharma | Nifty IT minus Nifty Pharma (points) |
|---|---|---|---|
| 2013 | +58.0% | +26.5% | +31.5 |
| 2014 | +17.8% | +43.4% | −25.6 |
| 2015 | 0.0% | +9.3% | −9.3 |
| 2016 | −7.3% | −14.2% | +6.9 |
| 2017 | +12.2% | −6.3% | +18.5 |
| 2018 | +23.8% | −7.8% | +31.6 |
| 2019 | +8.4% | −9.3% | +17.7 |
| 2020 | +54.9% | +60.6% | −5.7 |
| 2021 | +59.6% | +10.1% | +49.5 |
| 2022 | −26.0% | −11.4% | −14.6 |
| 2023 | +24.1% | +33.6% | −9.5 |
| 2024 | +22.0% | +39.1% | −17.1 |
| 2025 | −12.6% | −2.9% | −9.6 |
| 2026 to 16 Oct | −15.7% | +13.5% | −29.2 |
The widest lead for Nifty IT was +49.5 points in 2021 (+59.6% against +10.1%). The widest for Nifty Pharma was +29.2 points in 2026 (+13.5% against −15.7%). In 6 periods both rose, in 3 both fell, and in 5 one rose while the other fell.
What ₹1 lakh would have become
| 31 December 2012 | 16 October 2026 | Multiple | Per year | |
|---|---|---|---|---|
| Nifty IT | ₹1,00,000 | ₹5,29,865 | 5.30× | 12.9% |
| Nifty Pharma | ₹1,00,000 | ₹4,27,202 | 4.27× | 11.1% |
The gap compounds quietly. Nifty IT ended 24.0% ahead of Nifty Pharma in total, but its edge came from particular years, not from winning every year. The longest unbroken run of leads was five years for Nifty Pharma, ending 2026.
How volatile each one was
Across the 13 full calendar years, the yearly return of Nifty IT had a standard deviation of 27.0 points and Nifty Pharma 24.8 points. Nifty IT was the bumpier of the two. The year-on-year swing, not the average, is what an investor in a single index actually lives through.
Where valuations stand
| As of 16 October 2026 | P/E | P/B | Dividend yield | Median P/E since 1999 |
|---|---|---|---|---|
| Nifty IT | 19.8 | 5.59 | 3.66% | 24.3 |
| Nifty Pharma | 39.9 | 4.85 | 0.58% | 34.5 |
Nifty IT's P/E sits at the 24th percentile of its own record and Nifty Pharma's at the 71st. A low percentile means cheaper than usual for that index, not that it must rise. Each index's own history is the fair yardstick; comparing a P/E of one against the other mixes different businesses.
Reading the comparison
- Calendar years are a blunt cut. A year that ends on a peak or a trough can flip a winner, so a different start month would change several rows.
- These are price returns. Dividends are excluded for both, so total returns are higher than shown, by different amounts for each.
- Past leads are not a forecast. A sector or metal that led for several years has also been the one that lagged for several.
- None of this is a recommendation to buy or sell any index or fund.
More on these
- Nifty IT P/E in October 2026
- Nifty Pharma P/E in October 2026
- Technology fund returns
- Pharma and healthcare fund returns
Source: NSE Nifty IT and Nifty Pharma daily closes and valuation ratios, 31 December 2012 to 16 October 2026; calendar-year returns, latest period to 16 October 2026.
Frequently asked questions
Which has done better since 2013, Nifty IT or Nifty Pharma?
Nifty IT. From 31 December 2012 to 16 October 2026 Nifty IT rose 5.30 times (12.9% a year) and Nifty Pharma rose 4.27 times (11.1% a year), as price-index returns, without dividends.
In how many years did Nifty IT beat Nifty Pharma?
6 of 14 calendar-year periods, counting the partial year to 16 Oct. Nifty Pharma was ahead in 8.
What was the biggest gap between Nifty IT and Nifty Pharma in one year?
49.5 points, in 2021 in favour of Nifty IT.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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