NSE Indices, the National Stock Exchange’s index services subsidiary, on Wednesday launched Nifty India Defence index, which aims to track the performance of portfolio of stocks that broadly represent the Defence theme.
From the Nifty Total Market index, stocks forming part of the defence, aerospace, explosives and ship building basic industries or those which obtain at least 10 per cent of revenues from the defence industry are eligible to be included in the index. Stock weights in index are based on their free-float market capitalisation and will be capped at 20 per cent each.
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, NSE said in a release.
The base date for the index is April 2, 2018, and base value is 1000. Index reconstitution will be done on a semi-annual basis.