National Stock Exchange (NSE) group company India Index Services & Products Ltd (IISL) on Monday announced the new Nifty broad market indices structure consisting of 11 indices, five of them newly - launched by it.
Aimed at incorporating industry best practice, the existing index structure has been enhanced to efficiently represent large, mid and small market capitalisation segments of the Indian capital market.
"The new structure ensures that a company will be classified into only one of the segments viz large, mid and small market capitalisation and provide better reflection of the performance of the respective segments, " said IISL chief executive Mukesh Agarwal in a statement.
Scheduled to be effective from April 1, IISL unveiled new indices include Nifty Midcap 150, Nifty Smallcap 250, Nifty Full Midcap 100, Nifty Smallcap 50 and Nifty Full Smallcap 100.
"With the launch of Nifty Smallcap 50 index, IISL will have a 50 stock index in each of the three segments. The launch of new indices and the index restructuring will facilitate introduction of investment products, " added Agarwal.
The existing six indices include Nifty 500, Nifty 100, Nifty 50, Nifty Next 50, Nifty Midcap 50 and Nifty 200.
Nifty 500 index comprising the top 500 companies based on full market capitalisation will be further classified into Nifty 100, Nifty Midcap 150 and Nifty Smallcap 250.
"The stock selection criteria for five indices viz. Nifty 500, Nifty 100, Nifty Next 50, Nifty Midcap 50 and Nifty 200 has been revised as per the new index structure, " the statement said.
Nifty 100 represents the top 100 companies based on full market capitalisation from Nifty 500 while Nifty Midcap 150 are the next 150 companies (ranked from 101 to 250) and the balance 250 companies are represented by Nifty Smallcap 250.
IISL will publish values of all the new indices at the end of the day and subsequently disseminate with existing indices online, the statement said.
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