Starting from today, April 8, 2024, the National Stock Exchange (NSE) has introduced four new indices. These indices are called Nifty Tata Group 25 percent Cap, Nifty 500 Multicap Infrastructure 50:30:20, Nifty 500 Multicap India Manufacturing 50:30:20, and Nifty MidSmall Healthcare. These indices will be accessible for trading in both the capital market and the Futures & Options (F&O) segment. Let’s delve into the specifics of these new indices.
Four New Indices: Details
Nifty Tata Group 25% Cap
This index consists of ten companies and is calculated using the free float market capitalization method. Some notable companies in this index are TCS, Tata Motors, and Titan. Investing in this index will allow you to track and benefit from the performance of Tata Group companies.
Nifty500 Multicap India Manufacturing 50:30:20
This index is created to track how well large-cap, mid-cap, and small-cap stocks focused on manufacturing perform within the Nifty 500 index. It includes a total of 75 stocks. The weights of these stocks are determined based on their free-float market capitalization, with large-cap stocks accounting for 50%, mid-cap stocks for 30%, and small-cap stocks for 20%. The main companies in this index are Reliance Industries, Sun Pharma, and Tata Motors.
Nifty500 Multicap Infrastructure 50:30:20
This index tracks the performance of specific large-cap, mid-cap, and small-cap stocks from the Nifty 500 index that are related to the infrastructure sector. Like the previous index, it consists of 75 companies and assigns weights based on their free-float market capitalization. Key companies in this index include Larsen & Tourbo, Reliance Industries, and Bharti Airtel.
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Nifty MidSmall Healthcare
This index tracks the performance of mid-cap and small-cap healthcare stocks, including up to 30 stocks selected from the Nifty MidSmallcap 400 index. Stocks are selected based on their free-float market capitalization, giving investors a way to invest in and monitor the performance of healthcare companies. The main companies included in this index are Lupin Limited, Max Healthcare Institute, and Aurobindo Pharma.
What do these new indices mean to investors?
The introduction of four new indices offers a broader way to invest in India’s growing economy. The Tata Group companies have a significant impact on the Indian stock market. With BSE offering more products in its F&O segment, competition is increasing. These new indices will give NSE an edge and attract more market share. Investor interest in manufacturing is growing due to clear government policies and predictable revenues, making this sector more appealing for broader market participation.
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