Risk-Adjusted Performance Evaluation of Sectorial Stocks in the Indian Equity Market

The Indian equity market offers investors diverse opportunities through sector-specific investment. Different sectors respond differently to macroeconomic conditions, regulatory changes, and technological developments, resulting in variations in return and risk. This study evaluates the risk-adjusted performance of selected companies across ten sectors listed on the National Stock Exchange (NSE) during the period 2019–2025. A sample of 100 companies representing sectors such as Financial Services, Information Technology, FMCG, Automobile, Pharmaceuticals, Energy, Metals, Infrastructure, Telecommunications, and Consumer Discretionary was selected using purposive sampling. The study employs Sharpe Ratio, Treynor Ratio, and Jensen’s Alpha to evaluate risk-adjusted performance and compares sectorial returns with the benchmark index. The results reveal that the Information Technology and Pharmaceutical sectors demonstrate superior risk-adjusted returns, whereas Telecommunications and Energy sectors show relatively weaker performance. The findings highlight the importance of sector-based investment strategies for portfolio diversification and efficient asset allocation.