The decision to revise the index was taken on Monday when the index committee of the exchange met. The new index will be effective from September 18. The BSE had recently recast its 30-scrip sensitive index including 15 new stocks.
The total market capitalisation of the securities now added to the index is Rs 13,879 crore. The capitalisation of those stocks which are being taken out of the index is Rs 3,688 crore indicating a total addition of Rs 10,191 crore to the total market capitalisation of the revised index.
The addition works out to be 6.51 per cent of the Rs 1,56,535 crore market capitalisation of the old index. The new index had a market capitalisation of Rs 1,66,729 crore as on August 30, which constitutes around 38 per cent of the total Rs 4,38,537 crore market capitalisation of all the listed plus permitted securities on the exchange.
The index committee has also decided to launch two new indices: the first is Dollar Nifty representing the NSE-50 in dollar denomination, and the second is the NSE Mid-cap representing companies from medium market capitalisation group.
According to a news release issued by NSE yesterday, the recast is part of the exchange's decision to review the stocks in the index every six months on the basis of market capitalisation, liquidity and other parameters. The NSE-50 index (Nifty) was launched on April 22 but the committee already had three months data on the stocks in the index, prior to the official launch.
The Nifty will be used for the index NSE Futures and Options segment expected to commence by end of this year.
