NSE Indices Launches Nifty Chemicals: A New Benchmark for the Sector

The National Stock Exchange's subsidiary, NSE Indices, has launched Nifty Chemicals, a new sectoral index tracking stocks from the chemicals segment of the Nifty 500. It will serve as a benchmark for asset managers and reference for passive funds like ETFs. The index is reconstituted semi-annually and rebalanced quarterly.

The National Stock Exchange's (NSE) subsidiary, NSE Indices, has introduced an innovative sectoral index named Nifty Chemicals. Launched on Tuesday, this index is designed to monitor the stock performance within the chemicals sector from the broader Nifty 500.

With an aim to become the sector's benchmark, Nifty Chemicals will assist asset managers and serve as a reference point for passive funds. These include Exchange Traded Funds (ETFs), index funds, and structured products, as stated by NSE.

From the top 20 stocks selected, based on a six-month average free float market capitalisation, preference is given to stocks present in the NSE derivatives segment. The stock weights in the index are determined by free float market capitalisation, with specific cap limits in place to maintain balance. This index will undergo a semi-annual reconstitution and quarterly rebalancing to ensure relevance and accuracy.

(With inputs from agencies.)