Come April 1, 2016, the National Stock Exchange (NSE), through its group company, India Index Services & Products Ltd. (IISL), would add 5 new Nifty broad-market indices to its structure taking the total such Nifty indices to 11.
The exchange has said that the existing index structure is being “enhanced to efficiently represent the large, mid and small market capitalisation segments of the Indian capital market.”
IISL has also decided to rebranding of existing Nifty Midcap 100 and Nifty Smallcap 100 indices. These indices will be published under the new names Nifty Free Float Midcap 100 and Nifty Free Float Smallcap 100 respectively.
We bring to you a snapshot of the five new indices:
Nifty Midcap 150
Nifty Midcap 150 represents the 150 companies (ranked 101-250) based on full market capitalisation from Nifty 500. This index intends to measure the performance of mid-market capitalisation companies.
Nifty Smallcap 250
Nifty Smallcap 250 represents 250 companies (companies ranked 251-500) from Nifty 500. This index intends to measure the performance of small market capitalisation companies.
Nifty Full Midcap 100
It includes all the companies from Nifty Midcap 50. Remaining companies are selected based on average daily turnover from Nifty Midcap 150 index.
Nifty Smallcap 50
Nifty Smallcap 50 represents top 50 companies selected based on average daily turnover from top 100 companies selected based on full market capitalisation in Nifty Smallcap 250 index.
Nifty Full Smallcap 100
It includes all the companies from Nifty Smallcap 50. Remaining companies are selected based on average daily turnover from top 150 companies selected based on full market capitalisation from Nifty Smallcap 250 index.
“The new structure ensures that a company will be classified into only one of the segments viz large, mid and small market capitalisation and provide better reflection of the performance of the respective segments. With the launch of Nifty Smallcap 50 index, IISL will have 50 stock index in each of the three segments. The launch of new indices and the index restructuring will facilitate introduction of investment products,” according to Mukesh Agarwal, CEO, IISL.
IISL will initially publish values of all the new indices at end of the day and subsequently disseminate online along with existing indices.
The existing Nifty broad-market indices are Nifty 500, Nifty 100, Nifty 50, Nifty Next 50, Nifty Midcap 50 and Nifty 200.