The index services subsidiary of the National Stock Exchange — NSE Indices — recently launched two new sectoral indices — Nifty Consumer Durables and Nifty Oil & Gas.

Each index consists of top 15 companies from their respective industries within the Nifty 500 index. The stocks are selected based on their average free-float market capitalisation, it said in a release.

The weight of each stock in the respective index is based on its free-float market capitalisation. The single stock weight shall be capped at 33 per cent and the weights of top three stocks cumulatively should not be more than 62 per cent at the time of rebalancing.

The base date for the index is April 01, 2005, and base value is 1,000 for both.

The index composition is reconstituted on a semi-annual basis and weights are rebalanced on a quarterly basis.

“The two new sectoral indices aim to reflect the performance of the consumer durable and oil & gas industries. These new indices, along with the existing Nifty sectoral indices, will help market participants in gauging the risk-return dynamics of various industries across time. These sectoral indices shall also appeal to investors looking to invest in underlying sectors through ETFs or index funds,” said Mukesh Agarwal, CEO, NSE Indices.

Nifty Consumer Durables Index and Nifty Oil & Gas index will be calculated on an end-of-day basis.

　

comment COMMENT NOW