NSE Launches Nifty Top 10 Equal Weight Index

NSE Indices Ltd., a subsidiary of the National Stock Exchange Ltd., launched the Nifty Top 10 Equal Weight Index. The newly launched index will track the performance of top 10 companies selected from the Nifty 50, based on free-float market capitalisation.

All the stocks that will be part of the index will be equally weighted, NSE said in a release on Monday. The base date for the index will be March 2, 2006, while the base value is at 1,000.

The Nifty Top 10 Equal Weight Index will be reconstituted on a semi-annual basis. On the other hand, the weight will be rebalanced on a quarterly basis.

As of launch, the financial services sector holds the highest weightage of 41.33%, followed by FMCG at 20.29%, and IT with 18.97% in the index.

In the index, Axis Bank Ltd. has the highest weightage at 11%. It is followed by HDFC Bank Ltd. with 10.59% and Hindustan Unilever Ltd. with 10.36% weightage. ICICI Bank Ltd. and ITC Ltd. are next in the list, followed by Larsen & Toubro Ltd., Reliance Industries Ltd., TCS Ltd., Infosys Ltd. and Kotak Mahindra Bank Ltd.

The newly launched NSE index will also act as a benchmark for asset managers and a reference index tracked by passive funds in the form of exchange-traded funds, index funds and structured products.

This comes after the NSE Indices launched a new thematic index—Nifty India Tourism, earlier this month to track the performance of stocks from the Nifty 500, which represent the travel and tourism theme. At present, 17 stocks are part of the Nifty India Tourism, which will be reconstituted semi-annually and rebalanced on a quarterly basis.