NSE Indices, a subsidiary of NSE specializing in index services, introduced two new indices, the Nifty500 Multicap India Manufacturing 50:30:20 index and the Nifty500 Multicap Infrastructure 50:30:20 index, on March 6.
The Nifty500 Multicap India Manufacturing 50:30:20 index is designed to monitor the performance of chosen large cap, mid cap, and small cap stocks from the Nifty 500 index, representing the manufacturing sector.
Similarly, the Nifty500 Multicap Infrastructure 50:30:20 Index is created to track the performance of selected large cap, mid cap, and small cap stocks from the Nifty 500 index, focusing on the infrastructure theme.
According to NSE’s press release, the stocks’ weights in the indices will be determined based on their free float market capitalization. The large cap segment will have a fixed weight of 50 percent, while the midcap segment will be allocated 30 percent, and the small cap segment will receive 20 percent. Additionally, the weight of any individual stock in the index will be capped at 10 percent.
The base date for the indices is set as April 1, 2005, with a base value of 1000. NSE stated that the indices will undergo reconstitution semi-annually, while weights will be rebalanced quarterly.
