On Wednesday, April 8, 2024, 4 new indices were launched by The National Stock Exchange ( NSE ). These new indices will operate in both, the cash and future & options segments. These new indices will offer investors more targeted exposure to the specific sectors and companies. It is another small step toward building Bharat as a financial superpower.
Table of Contents
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation.
Four New Indices
Nifty TATA Group 25% Cap Index.
It is a report card of the 10 largest companies of the TATA group that are available for public trading. Investors can easily compare the market and TATA group performance. The index also helps investors to know which companies are performing in the group. Companies are selected from different industries in which the TATA group operates. It capped 25% weightage to manage the risk. So no single company can control index performance. Investing in this product provides exposure to the 10 best companies from TATA Group and you will not worry about selecting individual stocks.
Index Name: Nifty Tata Group 25% Cap | Broadcast Name: Nifty Tata 25 Cap
Nifty MidSmall Healthcare Index
Nifty MidSmall Healthcare index, the name itself suggests, will give exposure to the healthcare sector. It is a group of 30 potential companies from Mid and small-cap. These 30 companies were selected based on their market capitalization and from Nifty MidSmallCap 400 index in the healthcare sector. Index focused on mid and small companies that may have higher growth potential. It is a tool for investors to look for opportunities in the healthcare sector and from the Mid and Small sectors.
Index Name: Nifty MidSmall Healthcare Index | Broadcast Name: Nifty MidSml Hlth
Nifty500 Multicap India Manufacturing 50:30:20
This index focused on the manufacturing sector. All companies in this index choose from the top 500 companies listed on the NSE. You may think what is 50:30:20 in index? So it is weightage structure which represents Large Cap (50%), Mid Cap (30%) and Small Cap (20%) exposure. Index structure offers a diversification of well-established Large Cap and high growth possibilities of Mid Cap and Small Cap companies. Stability and low risk of large-cap and growth potential with high risk of Mid and Small-cap companies. Those who looking into the Indian manufacturing sector and believe growth might help this index.
Index Name: Nifty 500 Multicap India Manufacturing | Broadcast Name: Nifty Multi Mfg
Nifty500 Multicap Infrastructure 50:30:20
This index is the same as the manufacturing index we discussed above, the only difference is the targeted sector. It is following Infrastructure growth. Infrastructure is a wide and important sector of the growth story of any nation. The index included companies from the top 500 companies from the infrastructure sector, based on market capitalization on National Stock Market. The index also follows the Large Cap (50%), Mid Cap (30%) and Small Cap (20%) weightage structure which gives investor establishment and low risk of large-cap companies and growth possibilities and high risk from mid and small-cap companies.
Index Name: Nifty 500 Multicap India Infrastructure | Broadcast Name: Nifty Multi Infra
National Stock Exchange ( NSE )
National Stock Exchange of India
The National Stock Exchange ( NSE ) offers a wide range of indices. National Stock Exchange owns and manages 350 indices under the Nifty brand to date. NSE is one of the leading stock exchanges in Bharat. 7th largest stock exchange in the world with a 4.2 Trillion dollar market cap. It was founded in 1992. NSE Indices Limited is a subsidiary of the National Stock Exchange Of India that offers products and services to the Indian Capital Market. Indices are mostly divided into five important groups
- Broad Market.
- Sectoral Indices.
- Thematic Indices.
- Strategy Indices
- Fix Income.
Here are some important Indices with their launch dates
| Name | Launch Date |
| Nifty 50 | April 22, 1996 |
| Nifty FMCG | April 1, 1996 |
| Nifty IT | April 1, 1996 |
| Nifty Pharma | April 1, 1996 |
| Nifty Bank | April 1, 1998 |
| Nifty Next 50 | April 1, 2005 |
| Nifty Midcap 50 | April 1, 2009 |
Those who want more information on a new index or any other index can visit the NSE website ( Indices Sectoral | Indices Thematic). The exchange provides a factsheet and detailed information for each index as Annexure 1 of the circular.
Disclaimer: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. This content is purely for information purpose only and in no way to be considered as an advice or recommendation.
