NSE Indices introduces Nifty India Digital Index
New barometer will track the performance of a portfolio of stocks that broadly represent the digital theme within basic industries like software, e-commerce, IT-enabled services, industrial electronics, and telecom services cos
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New Delhi: Leading stock exchange NSE's subsidiary, NSE Indices Limited, on Tuesday launched a digital index that will track the performance of companies exposed to the digital theme.
The Nifty India Digital Index aims to track the performance of a portfolio of stocks that broadly represent the digital theme within basic industries like software, e-commerce, IT-enabled services, industrial electronics, and telecom services companies, according to a statement. The largest 30 stocks from eligible basic industries are chosen based on their 6-month average free-float market capitalisation as on the cutoff dates at the end of January and July.
The weight of the stocks in the index is based on their free-float market capitalisation. "Digitalisation is happening rapidly and is touching every aspect of our lives. The Nifty India Digital index aims to capture the performance of companies exposed to the Digital theme, a theme which will likely continue to increase in importance in the future," said Mukesh Agarwal, Chief Executive Officer – NSE Indices Ltd.
The index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds, and structured products. The base date for the index is April 1, 2005, and the base value is 1000. Index reconstitution will be done on a semi-annual basis.
