The National Stock Exchange (NSE) has announced the introduction of four new indices in both the cash and futures and options segments. The new indices in NSE come into effect from April 8, 2024. What are these four new indices in the capital market? Let us take a look!
Key Highlights| New Indices in Capital Market
- NSE introduces four new indices on April 8: Nifty Tata Group 25% Cap, Nifty 500 Multicap India Manufacturing 50:30:20, Nifty 500 Multicap Infrastructure 50:30:20, and Nifty MidSmall Healthcare.
- Indices designed to capture specific sectors’ performance in capital markets.
- The Nifty Tata Group 25% Cap has showcased returns of 17.34% since inception, with TCS, Tata Motors, and Titan as top constituents.
- Nifty 500 Multicap India Manufacturing 50:30:20 tracks manufacturing theme with Reliance Industries, Sun Pharma, and Tata Motors.
- The Nifty 500 Multicap Infrastructure 50:30:20, including Larsen & Toubro, Reliance Industries, and Bharti Airtel, has recorded returns of 15.81% since inception.
Details of the New Indices in NSE
According to NSE, the broadcast of these indices will be available to F&O members in NEAT+ terminals under the multiple index inquiry screen.
Let us explore the details of these new indices in the capital market.
Nifty Tata Group 25% Cap
The Nifty Tata Group 25% Cap index comprises ten companies.
The index calculation is based on the free float market capitalisation method. Since its inception, it has yielded returns of 17.34 percent.
The primary components of this index include TCS, Tata Motors, and Titan Company.
Nifty500 Multicap India Manufacturing 50:30:20
Nifty 500 index will monitor the performance of specific largecap, midcap, and smallcap stocks from the Nifty 500 index. It represents the manufacturing theme.
The top constituents of the NIfty 500 index are:
- Reliance Industries
- Sun Pharma
- Tata Motors
Comprising 75 constituents, it allocates weights to stocks based on their free-float market capitalisation.
Largecap stocks hold 50%, midcap stocks 30%, and smallcap stocks 20%.
Nifty500 Multicap Infrastructure 50:30:20
The Nifty500 Multicap Infrastructure 50:30:20 Index mirrors the performance of selected large-cap, mid-cap, and small-cap stocks from the Nifty 500 index.
However, this Nifty500 Multicap reflects the infrastructure theme.
The top constituents in the index are:
- Larsen & Tourbo
- Reliance Industries
- Bharti Airtel
The index has given returns of 15.81 percent since its inception
Nifty MidSmall Healthcare
This index monitors midcap and smallcap stocks in the healthcare sector. Comprising up to 30 stocks, it is drawn from the Nifty MidSmallcap 400 index, selected based on their six-month average free-float market capitalisation.
The top constituents of the index are:
- Max Healthcare Institute
- Lupin Limited
- Aurobindo Pharma
The index has given returns of 21.33 percent since inception.
Conclusion
Focusing on sectors like manufacturing, infrastructure, and healthcare, these new indices on the NSE offer fresh opportunities to investors. Thus, widening the sectoral investment opportunities in the Indian capital markets.
Source- www.livemint.com, moneycontrol.com
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.