The National Stock Exchange launched 4 new indices on April 3. The new indices are Nifty Tata Group 25 per cent Cap, Nifty 500 Multicap India Manufacturing 50:30:20, Nifty 500 Multicap Infrastructure 50:30:20, and Nifty MidSmall Healthcare.
The new indices will be operative starting April 8 in the F&O market and the Capital market.
The new indices are aimed to streamline and simplify market analysis and track stock performance. Moreover, this will allow investors to compare stock performance with the benchmark stock of the sector.
Nifty Tata Group 25% Cap
This index is created to keep track of companies that belong to a certain corporate group. This index's top 3 constituents are TCS, Tata Motors, and Titan Company
Nifty 500 Multicap Infrastructure 50:30:20
The index will track a couple of large-cap, small-cap and mid-cap stocks from the Nifty 500 basket. These include Larsen & Tourbo, Reliance Industries, and Bharti Airtel
Nifty 500 Multicap India Manufacturing 50:30:20
The index will track a couple of large-cap, small-cap and mid-cap stocks from the Nifty 500 basket, mainly focusing on manufacturing themes. These include Reliance Industries, Sun Pharma, and Tata Motors.
Nifty MidSmall Healthcare
This index will track mid and small-cap stocks mainly associated with the healthcare sector. The top constituents of this index are Max Healthcare Institute, Lupin Limited, and Aurobindo Pharma.
What are Indices?
An index comprises a variety of individual assets whose prices are continuously monitored, providing an average price benchmark. This enables traders to conveniently track the overall price trends of the assets. For instance, in the stock market, indices combine shares from various companies such as Apple, Google, Microsoft, and others.