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NIFTY Consumer Durables is a sectoral index on the National Stock Exchange (NSE) that captures the performance of the domestic consumer durables industry. It is constituted of 15 tradable, exchange-listed durables stocks whose price movement is tracked on a real-time basis.
The basic industries eligible for inclusion in the NIFTY Consumer Durables index are the ones selling Air Conditioners, Consumer Electronics, Cycles, Footwear, Furniture, Home Furnishing, Flooring, Gems, Jewelry and Watches, Glass, Household Appliances, Leather and Leather Products, Leisure Products, Plywood Boards/ Laminates, Sanitary Ware, and Toys.
This NIFTY Consumer Durables index was launched on January 15, 2020, with the base date as April 1, 2005, and the base value at 1000. The NIFTY Consr Durbl share price since inception, has breached the levels of 25,000 at ~56x P/E multiples. It is reconstituted semi-annually and caps individual stocks at 33% weightage.
The NIFTY Consumer Durables index is owned and managed by NSE Indices Limited, previously known as India Index Services & Products Limited. The Consumer Durables index is governed by a three-tier structure that comprises the BOD of NSE Indices, the Index Advisory Committee and the Index Maintenance Sub-Committee.
NIFTY Consumer Durables has a variant in the form of the NIFTY Consumer Durables Total Returns Index. This index is ideal for launching index funds, ETFs, structured products and benchmarking fund portfolios.
The NIFTY Consumer Durables share price is computed by weighting its 15 stocks on the basis of periodically capped free-float market capitalization relative to a base market capitalization value on a real-time basis.
The securities must fulfill the following eligibility criteria for inclusion:
The index value is calculated as follows –
Index value = Current market capitalization/ (Base market capitalization * Base Index Value)
The NIFTY Consumer Durables index is semi-annually based on six months of data, with the cutoff date being January 31 and July 31 of each year. The replacement of stocks in NIFTY Consumer Durables (if any) is implemented from the last trading day of March and September after giving four weeks prior notice to the market.