India Index Services & Products Ltd (IISL), an NSE group company, today launched an index to measure the market performance of private sector banks in India.
The private bank index Nifty Private would complement 10 largest private sector banks listed on the NSE.
"The index will complement the existing Nifty Bank and Nifty PSU Bank indices and provide the investors with gamut of banking sector indices catering to different investment needs," IISL CEO Mukesh Agarwal said in a statement.
"It will be available for licensing for the launch of financial products such as exchange traded fund and structured products," he added.
The new index is calculated using free float market capitalisation method and stock weights are capped at 25 per cent.
The base date of this index is April 1, 2005 and base value is 1,000.
The index will be maintained by IISL and calculated on an end-of-day basis. The closing values of the index would be available on NSE's website.
