The National Stock Exchange Indices (NSE Indices) on June 12, 2024, launched the Nifty200 Value 30 Index.
The following has been stated:
• The Nifty200 Value 30 Index aims to track the performance of 30 companies from its parent Nifty 200 index, selected based on their ‘value’ scores. The value score of each company is determined based on the Earnings to Price ratio (E/P), Book Value to Price ratio (B/P), Sales to Price ratio (S/P) and Dividend Yield. Stock weights are based on a combination of the stock’s value score and its free-float market capitalization. Stock weights are capped at the lower of 5% or 5 times the weight of the stock in the index based only on free-float market capitalization.
• The base date for the index is April 01, 2005, and the base value is 1000. The index will be reconstituted and rebalanced on a semi-annual basis.
• The new 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.
