NSE launches Nifty Housing Index, seen as a benchmark for asset managers

17 Feb 2022 , 12:08 PM

The National Stock Exchange of India (NSE) announced that index services subsidiary, NSE Indices has launched a new index — Nifty Housing index. The launch was done on February 15, 2022.

NSE Indices stated that “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 newly launched index aims to track the performance of a portfolio of stocks that broadly represent the housing theme within basic industries like cement and cement products, paints, housing finance, banks, home appliances and housewares etc.

As per the NSE Indices statement, on the index, the largest 50 stocks forming part of the eligible basic industries are selected based on their 6-month average free-float market capitalization as on the cutoff dates at the end of January and July.

Also, index stock weights are based on their free-float market capitalization. Sector weights are capped at 25% each and stock weights are capped at 10% each.

The base date for the index is April 01, 2005, and the base value is 1000. Index reconstitution will be done on a semi-annual basis.