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India Index Services & Products Ltd (IISL), an arm of National Stock Exchange (NSE), today launched three indices to track performances of group companies belonging to Tata Group, Aditya Birla Group and Mahindra Group.
Nifty Tata Group Index, Nifty Aditya Birla Group Index and Nifty Mahindra Group Index are based on full market capitalisation method and include all the companies of the respective groups listed on the NSE.
“In future, IISL may come up with indices on other corporate groups and third party products can be built on such indices”, IISL CEO Mukesh Agarwal told PTI.
Noting that these indices are a first-of-its kind in the Indian capital market, Agarwal said that the indices would not only help investors, but also help these group companies internally judge the performance of their companies.
Individually, Nifty Tata Group Index consists of 25 companies across 12 sectors. The market capitalisation of this index is about Rs 7.51 lakh crore which represents 7.83 per cent of the total market capitalisation of companies listed on the stock exchange.
“Additional series of Tata Group namely ‘Nifty Tata Group 25% Cap’ based on free float market capitalisation with 10 constituents capped at 25 per cent is also being launched,” NSE said in a statement.
Nifty Aditya Birla Group Index includes eight companies across seven sectors with a market capitalisation of about Rs 2.08 lakh crore, translating to 2.17 per cent of the total market capitalisation of companies listed on NSE.
On the other hand, Nifty Mahindra Group index is composed of seven companies across six sectors. The market value of this index is nearly Rs 1.64 lakh crore which is 1.71 per cent of the total market cap of NSE.
These indices will be maintained by IISL and calculated on an end-of-day basis.
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