ButSpeak.com
News which Matters.
In a bold move to redefine benchmark strategies, NSE’s index services subsidiary, NSE Indices, introduced the Nifty500 Equal Weight index. This new strategy index, announced on Friday, mirrors the Nifty 500 but with an equal weighting for all its components, according to an NSE press release.
Set with a base date of April 1, 2005, and a base value of 1000, the Nifty500 Equal Weight index undergoes semi-annual reconstitution and quarterly rebalancing. This structure ensures that no single stock dominates, providing a balanced representation of the included companies.
“The index is designed to serve as a benchmark for asset managers and a reference point for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products,” the release detailed.
This launch marks the second consecutive strategic rollout by NSE Indices. Just a day prior, they introduced the Nifty EV & New Age Automotive index, the first of its kind in India to track the electric vehicle ecosystem and new-age automotive technology. This thematic index, based on the performance of companies within the EV sphere, has a base date of April 2, 2018, and also features a base value of 1000, with semi-annual reconstitutions and quarterly rebalancing.
Mukesh Agarwal, CEO of NSE Indices, highlighted the alignment of these innovative indices with market trends. “The Nifty EV & New Age Automotive index will pave the way for products that enable asset managers to invest in the burgeoning electric vehicle and new-age automotive sectors, providing new investment vehicles for investors,” Agarwal noted.
NSE Indices already offers a range of thematic indices like Nifty Commodities, Nifty India Consumption, and Nifty Infrastructure, among others. Additionally, it operates broad market indices such as Nifty and Nifty Next 50, along with 15 sectoral indices including Nifty Bank, Nifty IT, and Nifty Auto. Their diverse portfolio also includes strategy indices and fixed income indices, catering to various investment strategies and preferences.
The introduction of the Nifty500 Equal Weight index is a testament to NSE’s commitment to innovation and adaptability, aiming to provide robust investment tools that align with evolving market dynamics and investor needs.
