Nifty MNC

The NIFTY MNC share price is computed by weighting its 30 stocks on the basis of periodically capped free-float market capitalization relative to a base market capitalization value on a real-time basis. 

In order to be considered for inclusion in the NIFTY MNC index, the securities must fulfil 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 belong to the category of companies owned >50% by foreign promoters.
5. New securities will be included, if their float-adjusted market capitalization is at least 1.5 times of the index’s smallest constituent’s free-float market capitalization.
6. 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.
7. Should adhere to the cap of 10% in case of a single stock at the time of rebalancing, but weightage of stocks may increase beyond 10% between two rebalancing periods.

The index value is calculated as follows – 

    Index Value = Current Index Market Capitalization/ (Base Free Float Market Capitalization * Base Index Value)

Where,

Current Index Market Capitalization = Shares o/s * IWF * Capping factor * Price 

IWF (Investable Weight Factors) = 1 as it is based on market capitalization method 

Capping Factor = calculated every time an index is rebalanced

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