NSE, the National Stock Exchange, has introduced a new index called Nifty500 Equal Weight. This index offers a different way of calculating the value of stocks compared to its parent index, the Nifty 500. In this new index, all the companies are given equal weightage, meaning each company has the same importance in determining the index’s value.
The base date for this index is April 1, 2005, with a starting value of 1000. It’s reviewed and adjusted every six months, with weightages recalculated every three months.
This index is expected to become a standard for asset managers and a benchmark for passive funds like Exchange Traded Funds (ETFs), index funds, and other investment products.
This launch follows another recent release by NSE Indices, the Nifty EV & New Age Automotive index. This index focuses on companies involved in electric vehicles and new-age automotive technology. It also has a base date of April 2, 2018, and is reviewed and adjusted every six months, with weightages recalculated every three months.
Mukesh Agarwal, CEO of NSE Indices, stated that these indices reflect market trends and provide investment opportunities for asset managers and investors interested in electric vehicles and new automotive technology.
NSE offers various indices, including thematic ones like Nifty Commodities and Nifty India Consumption, as well as sectoral ones like Nifty Bank and Nifty IT. They also have Strategy Indices and Fixed Income Indices.
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