Sectoral indices track the performance of stocks from a specific industry sector - for example, Nifty Bank tracks the top banking stocks, and Nifty IT tracks top IT companies. They help investors understand sector-specific market trends.

NSE offers over 20 sectoral indices including Nifty Bank, Nifty IT, Nifty Pharma, Nifty Auto, Nifty FMCG, Nifty Metal, Nifty Realty, Nifty Energy, Nifty Financial Services, Nifty Media, Nifty Consumer Durables, and more.

Sectoral indices allow investors to identify which industries are outperforming or underperforming the broader market, guide sector rotation strategies, and help in constructing diversified sector-based portfolios or ETFs.

A broad market index (like Nifty 50) covers companies across all sectors. A sectoral index is limited to companies within one industry, providing a focused view of that sector's performance.

Performance varies by time period. Historically, Nifty IT and Nifty Bank have been among the strongest long-term performers, though individual periods can favour different sectors based on macro conditions.