NSE Introduces Four New Indices: Enhancing Sectoral Representation and Investment Opportunities2 min read
In a recent circular, the National Stock Exchange (NSE) has proposed four new indices in both the cash and futures and options segments, effective April 8th, 2024. This move underscores NSE’s commitment to diversifying investment options and providing investors with deeper insights into specific sectors of the economy.
The four new indices slated for introduction are:
These indices will be disseminated through online channels, as outlined in the circular released by NSE. Market participants, including F&O members, will have access to the indices via NEAT+ terminals under the multiple index inquiry screen.
Let’s delve into the specifics of each index:
1. Nifty Tata Group 25% Cap
This index comprises 10 companies and is determined using the free float market capitalization method. Notable components include TCS, Tata Motors, and Titan, offering investors exposure to the performance of Tata Group companies.
2. Nifty500 Multicap India Manufacturing 50:30:20
Designed to monitor the performance of large-cap, mid-cap, and small-cap stocks embodying the manufacturing theme within the Nifty 500 index. With 75 constituents, it allocates weights based on free-float market capitalization, with large-caps at 50%, mid-caps at 30%, and small-caps at 20%.
3. Nifty500 Multicap Infrastructure 50:30:20
This index reflects the performance of selected large-cap, mid-cap, and small-cap stocks from the Nifty 500 index with a focus on the infrastructure theme. Similar to the manufacturing index, it comprises 75 constituents and allocates weights based on free-float market capitalization.
4. Nifty MidSmall Healthcare
This index monitors mid-cap and small-cap stocks within the healthcare sector, comprising upto 30 stocks drawn from the Nifty MidSmallcap 400 index. Stocks are chosen based on their free-float market capitalization, providing investors with exposure to the healthcare segment’s performance.
Each index offers a unique investment proposition, catering to diverse investor preferences and sectoral themes. With well-defined methodologies and constituent stocks, these indices serve as valuable tools for portfolio diversification and risk management.
For those seeking further details, the exchange has provided a factsheet for each index as Annexure 1 of the circular. Additionally, comprehensive information regarding the newly introduced indices is available on the NSE website under the following paths:
| Index Name | Website link |
| Nifty MidSmall Healthcare | https://www.nseindia.com/products-services/indices-sectoral |
| Nifty Tata Group 25% Cap | |
| Nifty500 Multicap India Manufacturing 50:30:20 | https://www.nseindia.com/products-services/indices-thematic |
| Nifty500 Multicap Infrastructure 50:30:20 |
As the investment landscape evolves, the introduction of these indices by NSE represents a significant step towards enhancing market transparency and providing investors with broader avenues for investment across various sectors of the economy. (Source: NSE)
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