Mumbai. The country’s largest stock exchange, National Stock Exchange (NSE), on Tuesday (March 11) launched a new sectoral index Nifty Chemicals Index.
According to the official statement of NSE, this index will track the performance of chemical sector stocks falling under the Nifty 500 index.
The Nifty Chemicals Index will include the top 20 stocks in the chemical sector, which will be selected based on their 6-month average free-float market cap. The statement said that chemical stocks traded in the derivatives segment of NSE will be given priority in this index.
The base date for the index is April 1, 2005.
The weightage of each stock in the index will be determined by its free-float market cap. To ensure balance, the weightage of each stock will be capped at 33 per cent. The combined weightage of the top 3 stocks will be capped at 62 per cent. This new index will serve as a benchmark for asset managers and will likely be tracked by passive investment funds such as ETFs, index funds and structured products. The base date for this index has been fixed as April 1, 2005, with a base value of 1,000. In financial indices, the base date serves as a reference point to track changes in index values over time.
