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NSE Indices launches Nifty India Digital Index to track stocks
December 16, 2021
The National Stock Exchange index services subsidiary, NSE Indices Ltd on December 14 launched a new index – Nifty India Digital Index to track the performance of companies exposed to the digital theme.
The Nifty India Digital Index will track the performance of the portfolio of stocks that broadly represent the digital theme within basic industries like software, e-commerce, IT enabled services, industrial electronics, and telecom service companies, NSE Indices Ltd said.
The largest 30 stocks from eligible basic industries are chosen based on their 6-month average free float market capitalization as on the cut-off dates at the end of Jan and July.
The weight of the stocks in the index is based on their free float market capitalization. Sector weights are capped at 50% each and stock weights are capped at 7.50% each.
Mukesh Agarwal, CEO of NSE Indices Ltd. said, “Digitization is happening quickly and is touching every aspect of our lives. The Nifty India Digital Index aims to capture the performance of organizations exposed to the Digital theme, a theme which will likely continue to grow in importance in the future”.
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, index funds and structured products.
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