NSE Indices Introduces Nifty Smallcap 500 Index

NSE Indices Limited, a subsidiary of the National Stock Exchange (NSE), has unveiled the Nifty Smallcap 500 Index.  

This new index is designed to track the performance of 500 small-cap stocks, selected based on a 6-month average full market capitalisation following the Nifty Midcap 150 index. 

Details of the Nifty Smallcap 500 Index 

The Nifty Smallcap 500 Index aims to provide a comprehensive view of the small-cap segment of the Indian stock market. Each stock's weight in the index is determined by its free-float market capitalisation.  

The index has a base date of April 1, 2005, and a base value of 1,000. It will undergo reconstitution semi-annually in March and September to ensure it remains representative of the small-cap market. 

Benchmark for Asset Managers 

This new index is expected to serve as a benchmark for asset managers and will be a reference index for passive funds, including Exchange Traded Funds (ETFs), index funds, and structured products.  

The introduction of the Nifty Smallcap 500 Index enhances the range of indices available under the Nifty brand, providing investors with more options to track and invest in the small-cap segment. 

Read More: BSE Introduces New All Stock Futures Benchmark and Plans Long‑Short Indices for Alternative Strategies! 

About NSE Indices Limited 

NSE Indices Limited, formerly known as India Index Services & Products Ltd. (IISL), is a subsidiary of NSE. It offers a wide array of indices and index-related services for capital markets.  

The company manages a portfolio of indices under the Nifty brand, including the well-known Nifty 50. In addition to equity indices, NSE Indices Limited also maintains fixed income indices based on Government of India securities, corporate bonds, and money market instruments. 

Conclusion 

The launch of the Nifty Smallcap 500 Index by NSE Indices Limited marks a significant addition to the suite of indices available to investors. By tracking 500 small-cap stocks, this index provides a broad view of the small-cap market, offering valuable insights and benchmarking opportunities for asset managers and investors alike. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.