The stock market is a platform which facilitates trading activities, and it is very volatile in nature. Foran investor it is very critical to understand the various factors like risk, return, correlation etc. whichinfluence their investment decisions. Portfolio analysis of stocks also plays a pivotal role. This studyfocuses on portfolio analysis and investment decisions with respect to pharmaceutical sector in India.From Nifty Pharma Index, top five pharmaceutical companies are selected and risk and returnanalysis, correlation, portfolio analysis and optimum portfolios are done. Techniques like mean,standard deviation, correlation, portfolio mean, portfolio standard deviation and optimum portfolioformulas are used. From the study, it was found that Divi Labs and Cipla optimum portfolio mix givesthe highest return, whereas Sun Pharma and Cipla mix is having the highest risk. From the overallstudy, it is suggested that investors as per their investment objectives should have risk, return andportfolio analysis for making the best investment decisions.
