Nifty Media

What is NIFTY Media?

NIFTY Media is a sectoral index on the National Stock Exchange (NSE) which captures the performance of the media sector in the Indian economy on a real-time basis. It is constituted of 15 stocks that are engaged in media & entertainment, printing & publishing, advertising etc. 

The basic industries eligible for inclusion in the NIFTY Media index are the ones dealing with Advertising & Media Agencies, Digital Entertainment, Electronic Media, Film Production, Distribution & Exhibition, Media & Entertainment, Print Media, Printing & Publication, TV Broadcasting & Software Production, and Web-based media and services.

This NIFTY Media index was launched on July 19, 2011, with the base date as December 30, 2005, and the base value at 1000. The NIFTY Media share price since inception, has approached the levels of 1,900. It is reconstituted semi-annually in order to ensure that it continues to reflect the changing dynamics of the Indian media industry.

The NIFTY Media index is owned and managed by NSE Indices Limited, previously known as India Index Services & Products Limited. The Media 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 Media has a variant in the form of the NIFTY Media Total Returns Index. This index has multiple applications in index funds, structured investment products, ETFs, and benchmarking fund portfolios.

Nifty Media Stocks Selection Criteria

The NIFTY Media share price is computed by weighting its 10 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:

1. Should be listed on the National Stock Exchange.
2. Should form a part of NIFTY 500.
3. If the number of eligible stocks falls below 10, then in such cases, the deficit number of stocks shall be selected from the universe of top 800 ranked stocks based on both average daily turnover and average daily full market capitalization data of the previous six months from NIFTY 500’s universe.
4. Should be a part of the media sector.
5. Should have a trading frequency of at least 90% in the past six months.
6. Should have a listing history of at least six months.
7. A recently listed company (IPO) can be included if it meets the above eligibility criteria for a period of three months instead of six months.
8. Should adhere to the cap of 33% in case of a single stock and 62% for the top 3 stocks cumulatively at the time of rebalancing.

How is Nifty Media Value Calculated?

The index value is calculated as follows – 

Index value = Current market capitalization/ (Base market capitalization * Base Index Value)

The NIFTY Media index is rebalanced 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 Media (if any) is implemented from the last trading day of March and September after giving four weeks prior notice to the market.