On April 3, the National Stock Exchange introduced four new indices: Nifty Tata Group 25 percent Cap, Nifty 500 Multicap India Manufacturing 50:30:20, Nifty 500 Multicap Infrastructure 50:30:20, and Nifty MidSmall Healthcare.
F&O and Capital markets will begin operating the new indices on April 8. They are designed to streamline and simplify market analysis, as well as to track stock performance. This will also provide investors with the opportunity to compare stock performance with benchmark stocks within a sector.
Nifty Tata Group 25% Cap
This index is designed to track companies that belong to a certain corporate group. The top three constituents of this index are TCS, Tata Motors, and Titan Corporation.
50:30:20 Nifty 500 Multicap Infrastructure
There will be three large-cap, small-cap, and mid-cap stocks included in the index, including Larsen & Tourbo, Reliance Industries, and Bharti Airtel.
50:30:20 Nifty 500 Multicap India Manufacturing
The index will track a few large-cap, small-cap, and mid-cap stocks from the Nifty 500 basket, focusing primarily on manufacturers. These include Reliance Industries, Sun Pharma, and Tata Motors.
MidSmall Healthcare: A Nifty Pick
Max Healthcare Institute, Lupin Limited, and Aurobindo Pharma are the top constituents of this index. This index tracks mid-cap and small-cap stocks primarily associated with the healthcare sector.
How do indices work?
As a result of continuous monitoring of the prices of individual assets, indexes provide an average price benchmark for each asset. This allows traders to conveniently track the overall price trends of the assets. For instance, in the stock market, indices combine shares from a variety of companies, including Apple, Google, Microsoft, and others.
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