NSE launches new thematic index: Nifty Capital Markets

NSE Indices, the index services subsidiary of the National Stock Exchange (NSE), launched a new thematic index called the Nifty Capital Markets Index.

The Nifty Capital Markets Index tracks the performance of stocks from the Nifty 500 Index that are relevant to the capital market theme. The index includes companies from basic industries such as asset management companies, exchanges and data platforms, stockbroking & allied services, depositories, clearing houses, financial products distributors, ratings, and other capital market-related services.

A maximum of 20 stocks are selected for inclusion in the index based on their free-float market capitalization. The weights of these stocks are determined by their free-float market capitalization, subject to a stock cap of 20%.

The base date for the Nifty Capital Markets Index is April 1, 2019, and the base value is 1000. The index will be reconstituted semi-annually and rebalanced quarterly.

The new index is anticipated to serve as a benchmark for asset managers and be tracked by passive funds such as Exchange Traded Funds (ETFs), index funds, and structured products.

In terms of performance, the index has delivered a robust 112.64% return over the past year and a 32.95% compounded annual growth rate (CAGR) over the past 5 years.

Currently, HDFC Asset Management Company holds the largest weight in the index at 17.47%, followed by BSE (15.09%), Multi Commodity Exchange of India (10.4%), Central Depository Services (India) (10.3%), and Computer Age Management Services (8%).

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