NSE Index Limited, the Index Services subsidiary of NSE, has recently launched a new index – Nifty India Digital Index.
Nifty India Digital Index aims to track the performance of a portfolio of stocks that broadly represent the digital theme within core industries such as software, e-commerce, IT enabled services, industrial electronics and telecom service companies. As per the NSE indices, the largest 30 stocks of eligible basic industries are selected on the basis of their 6-month average free-float market capitalization on cutoff dates in January and end of July. The weighting of stocks in the index is based on their free-float market capitalization. Sector weights are capped at 50 percent each and stock weights are capped at 7.50 percent each.
“Digitalization is happening rapidly and is touching every aspect of our lives. Nifty India Digital Index aims to capture the performance of companies exposed to the digital theme, a theme that will continue to grow in importance in future,” said Mukesh Agarwal, CEO – NSE Index Ltd.
The index will act as a benchmark for asset managers and a reference index tracked by passive funds such as exchange-traded funds (ETFs), index funds and structured products, NSE Index said in a press release.
The base date for the index is April 01, 2005 and the base price is 1000. The index will be restructured on a half-yearly basis.
The top constituents by weightage in the index are now Indian Railway Catering and Tourism, Bharti Airtel, Infosys, Wipro, TCS, Tata Communications, Info Edge, HCL Technologies, Tech Mahindra and Indiamart Intermesh.
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