NSE Indices launches Nifty500 Equity Weight, a new strategy index

A new strategy index called Nifty500 Equity Weight was introduced by NSE’s subsidiary- NSE Indices. According to the press release of this index, it is an alternate weightage approach to its mother index, that is, Nifty 500. All firms are given equal weights in this index even if it is made up of the same companies as those found in the Nifty 500. 

Key details about The Nifty500 Equity Weight

• The base date for this index is April 01, 2005 and its base value will be 1000.
• Reconstitution and Rebalancing: On a quarterly basis, weights are rebalanced while semi-annually reconstitution of the index takes place.

Purpose and Use

Asset managers are expected to use it as a benchmark. It has also been used as a reference or comparative index for passive funds like Exchange Traded Funds (ETFs), structured products and Index Funds respectively.

Recent Launches by NSE Indices 

This marks the second launch in a row for NSE Indices. On Thursday just prior to that they launched another one called: ‘Nifty EV & New Age Automotive Index’. This thematic index seeks to track the performance of electric vehicle (EV) ecosystem related companies or those involved in development of new age automobile vehicles and their technologies.

Thematic indices at NSE

At NSE there are over15 thematic indices such as:

• Nifty Commodities 
• Nifty India Consumption 
• Nifty CPSE
• Nifty  Infrastructure 

Aside from thematic indices, NSE operates Broad Market Indices such as Nifty 100, Nifty Next 50, Nifty 500, and Nifty 200 among others. The exchange also runs sixteen sectoral indices including Nifty Bank, Nifty IT and Nifty Auto. Further they have Strategy Indices and Fixed Income Indices.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.