Risk and Return Analysis of Prominent Sectoral Indices of NSE and NIFTY 50

The research studies the risk-return characteristics between specified sectoral NSE indices and the Nifty 50 performance in India. The growth and international attractiveness of India's stock market demand sectoral performance knowledge for sound investment choices, while research on sectoral changes after global disruptions shows limited availability. The research analyzes five primary sectoral indices of Nifty Auto, Nifty Pharma, Nifty FMCG, Nifty Software, and Nifty Energy. Research spanning five years utilizes standard deviation, beta, variance, Sharpe Ratio, Treynor Ratio, and Capital Asset Pricing Model (CAPM) to evaluate performance differences and analyzes historical data collections. The study's results demonstrated that sectoral index measurements diverge substantially from the NIFTY 50 because the null hypothesis was rejected. Various industry performances showed unique behavior patterns because of specific market factors, while the COVID-19 pandemic increased their impact. Specialized investment plans should target specific sectors because different economic situations and outside shocks affect every sector in distinct ways, according to the research data. The research delivers modern insights about performance across financial sectors, which considers recent worldwide disruptions to establish a base for enhancing targeted portfolio management strategies in India's swiftly changing financial sector.