BSE Healthcare Index: From Returns to Risks, Investment Process

Healthcare is integral to any economy. Until the healthcare of any economy improves, the overall economy cannot grow, which is the case with underdeveloped countries. Thus, it is crucial to analyse and keep track of the healthcare industry if you are an investor, as economic growth is key to every investment. 

Now it is not possible, especially for passive investors, to go and individually check all stocks, and here comes the BSE Healthcare index. The index has increased by 2.27% in the last year and is currently at 432,704.53. 

This article will cover the S&P BSE Healthcare index’s constituents, performances, factors affecting the index, risks, and many such aspects that can help you understand the index and its constituents and the overall sector as a whole. 

BSE Healthcare Index – Overview & Constituents 

BSE Healthcare Index is an equity index which primarily developed for tracking the healthcare sector in India. It is comprised of 105 stocks from the BSE Allcap Universe, which are classified as healthcare sector stocks as per the BSE industry definitions and classification system. The index was launched on 9 August 1999. 

The BSE Healthcare index stocks list includes: (As of 30 Sep 2025)

AARTI DRUGS LTD.	DR. REDDYS LABORATORIES LTD.	KMC SPECIALITY HOSPITALS (INDIA) Ltd.	Sai Life Sciences Limited	VIMTA LABS LTD.
Aarti Pharmalabs Limited	Emcure Pharmaceuticals Limited	KOPRAN LTD.	Sanofi Consumer Healthcare Ind	Windlas Biotech Limited
ABBOTT INDIA LTD.	Eris Lifesciences Limited	KOVAI MEDICAL CENTER & HOSPITAL Ltd.	SANOFI INDIA LTD	WOCKHARDT LTD.
ACUTAAS CHEMICALS LIMITED	FDC LTD.	Krishna Institute of Medical Sciences Ltd.	Sastasundar Ventures Limited	YATHARTH HOSPITAL & TRAUMA CARE Ltd.
Advanced Enzyme Technologies Ltd.	FORTIS HEALTHCARE LTD.	Krsnaa Diagnostics Limited	SENORES PHARMACEUTICALS LIMITED	Zydus Lifesciences Limited
AJANTA PHARMA LTD.	Gland Pharma Limited	Laurus Labs Limited	SEQUENT SCIENTIFIC LTD.
Akums Drugs and Pharmaceutical Ltd.	GLAXOSMITHKLINE PHARMACEUTICAL LTD.	LINCOLN PHARMACEUTICALS LTD.	Shalby Limited
ALEMBIC PHARMACEUTICALS LTD.	GLENMARK PHARMACEUTICALS LTD.	LUPIN LTD.	SHILPA MEDICARE LTD.
ALIVUS LIFE SCIENCES LIMITED	Global Health Limited	Mankind Pharma Limited	Sigachi Industries Limited
Alkem Laboratories Limited	GPT Healthcare Limited	MARKSANS PHARMA LTD.	SMS PHARMACEUTICALS LTD.
APOLLO HOSPITALS ENTERPRISE Ltd.	GRANULES INDIA LTD.	Max Healthcare Institute Limit	SOLARA ACTIVE PHARMA SCIENCES
Artemis Medicare Services Limited	GUFIC BIOSCIENCES LTD.	Metropolis Healthcare Limited	STRIDES PHARMA SCIENCE LIMITED
Aster DM Healthcare Limited	GUJARAT THEMIS BIOSYN LTD.	MOREPEN LABORATORIES LTD.	SUN PHARMA ADVANCED RESEARCH CENTRE Ltd.
ASTRAZENECA PHARMA INDIA LTD.	HealthCare Global Enterprises	Narayana Hrudayalaya Limited	SUN PHARMACEUTICAL Ltd.
AUROBINDO PHARMA LTD.	HESTER BIOSCIENCES LTD.	NATCO PHARMA LTD.	Supriya Lifescience Limited
BIOCON LTD.	HIKAL LTD.	NEULAND LABORATORIES LTD.	SURAKSHA DIAGNOSTIC LIMITED
BLISS GVS PHARMA LTD.	Indegene Limited	NGL FINE-CHEM LTD.	SUVEN LIFE SCIENCES LTD.
Blue Jet Healthcare Limited	INDOCO REMEDIES LTD.	NOVARTIS INDIA LTD.	SYNCOM FORMULATIONS (INDIA) LTD.
CAPLIN POINT LABORATORIES LTD.	INDRAPRASTHA MEDICAL CORP.LTD.	Orchid Pharma Limited	Syngene International Limited
CIPLA LTD.	INNOVA CAPTAB LIMITED	PFIZER LTD.	Tarsons Products Limited
Cohance Lifesciences Limited	IOL CHEMICALS & PHARMACEUTICAL LTD.	PIRAMAL PHARMA LIMITED	THEMIS MEDICARE LTD.
Concord Biotech Limited	IPCA LABORATORIES LTD.	POLY MEDICURE LTD.	Thyrocare Technologies Limited
Dishman Carbogen Amcis Limited	J.B.CHEMICALS & PHARMACEUTICAL	PROCTER & GAMBLE HEALTH LIMITED	TORRENT PHARMACEUTICALS LTD.
DIVIS LABORATORIES LTD.	JUBILANT PHARMA LIMITED	Rainbow Children’s Medicare Ltd.	UNICHEM LABORATORIES LTD.
Dr. Lal Pathlabs Limited	Jupiter Life Line Hospitals Ltd.	RPG LIFE SCIENCES LTD.	Vijaya Diagnostic Centre Limited

The top ten stocks by weightage – 

Stocks	Weight in the Index (%)
Sun Pharmaceuticals Industries	13.15
Max Healthcare Institute Ltd.	6.71
Cipla Ltd.	6.42
Divis Laboratories Ltd.	6.14
Dr. Reddy’s Laboratories Ltd.	5.65
Apollo Hospitals Enterprise Ltd.	5.51
Lupin Ltd.	3.41
Fortis Healthcare Ltd.	3.26
Torrent Pharmaceuticals Ltd.	2.87
Laurus Labs Ltd.	2.48

Selection Criteria

The BSE Healthcare index is a sectoral index having over hundreds of stocks in it. So, for this index, the selection criteria are – 

• The stocks of the BSE Healthcare index have to be from the BSE Allcap universe. 
• The index constituents of the BSE healthcare have to be from the healthcare sector only. It should be according to the Common Industry Classification Structure. 

Factors Affecting the BSE Healthcare Index

The Healthcare sector depends on certain factors, and so does the S&P BSE Healthcare index. Let’s look at the top reasons that can make this index volatile – 

• Income Level: In any economy, income level plays a pivotal role in determining its health condition. Economies having lower per capita income often face more health disparities due to lower access to good nutrition. The healthcare industry also depends on this, and so does the healthcare Index. India is improving its healthcare facilities, but it’s a long way from going. 
• Demographics: Another major factor contributing to the healthcare sector is the demographic of an economy. If the economy has an aging population, it can see its healthcare sector growing owing to the need for more healthcare facilities for elderly people and vice versa. India has one of the youngest populations; however, given the rate of lifestyle-related diseases is getting young people unhealthy as well. 
• Technological Advancement: Yes, advancement in the healthcare space also determines its growth and so of the S&P BSE healthcare index. 
• Healthcare infrastructure: Similar to technological advancement, healthcare infrastructure is the base of the healthcare system. It affects the healthcare companies’ share price. In India, it is still in a very poor state, and thus the sector is not growing as it should have been, so is the healthcare index of BSE. 
• Medical Tourism: Even though India has a lot to improve in its medical facilities, it is still the top destination for medical tourism across South Asia. People from Bangladesh, Nepal, Bhutan, Pakistan, Afghanistan, and Sri Lanka visit India in large numbers to avail medical treatment. This definitely boosts the overall healthcare sector in the country and increases the healthcare share prices. 

BSE Healthcare Index Calculation Method

For the BSE Healthcare index, the stocks are selected based on average daily market capitalisation. 

For assigning weights, the Market Cap Weighted method is used, and then the following formula is used to derive the index value. 

BSE Healthcare Index Value = Index Market Value / Divisor

Performance and Returns

Here are the returns for different periods – 

Period	Price Return (%)	Total Return (%)
YTD	0.21	0.68
1 Year	11.98	12.71
3 Years	25.60	26.46
5 Years	19.93	20.69
10 Years	10.28	10.99
3 Months	7.49	7.80
1 Month	2.51	2.73

Risk and Volatility

Here are the details of Annualised Risk and Annualised Risk-adjusted Return generated by the BSE indices of the healthcare sector– 

Period	Price Return (%)	Total Return (%)
Annualised Risks
1 Year	18.46	18.49
3 Years	15.51	15.53
5 Years	16.40	16.43
10 Years	18.21	18.22
Annualised Risk-Adjusted Returns
1 Year	0.65	0.69
3 Years	1.63	1.68
5 Years	1.22	1.26
10 Years	0.56	0.60

How to Invest in the BSE Healthcare INDEX?

You can invest in the BSE Healthcare Index using ETFs, index funds, or you can trade them on the trading platform. You can also trade BSE Healthcare Index futures and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps – 

• Open the Shoonya app.
• Head to the “Watchlist” tab located at the bottom of your screen.
• In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
• Once you find your desired index, click on the add option given on the right side.
• Now you can see the index on the watchlist. 

Conclusion

Healthcare is a pillar of society and the economy. However, it is one of the most deprived sectors in India as well. However, given the rising medical tourism, rising income level, and rise in chronic diseases, and most importantly increase in lifestyle diseases, this sector is expected to grow steadily over time. With the BSE Healthcare index, you can always have an eye on the sector.  

BSE Healthcare Index | FAQs

Source: BSE

Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.