NSE Indices Limited, the NSE’s index services subsidiary, launched a new thematic index, Nifty India Railways PSU, today.
The Nifty India Railways PSU index tracks the performance of PSUs from the Nifty 500, which are either owned by the Ministry of Railways (classified as core group) or cater to the Indian Railways (classified as non-core group). The weight of each stock in the index is based on its free-float market capitalization. The aggregate weight of stocks belonging to the core group is capped at 80 per cent, and the aggregate weight of stocks belonging to the non-core group is capped at 20%. The weight of each stock is capped at 20 per cent
The index’s base date is April 1, 2021, and its base value is 1,000. It will be reconstituted semi-annually and rebalanced quarterly.
The new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds, such as Exchange Traded Funds (ETFs), index funds, and structured products.
