Big News For Tata Stocks! NSE To Launch Nifty Tata Group 25% Cap Index, 3 Others In Four Days; Details Here

Tata Group stocks will be in focus on Thursday as the National Stock Exchange (NSE) has announced to introduction of an indexnamely Nifty Tata Group 25% Cap under which only top 10 Tata stocks are included. NSE will launch four new indices which also include an index for Multi Infra, MidSmall Healthcare, and Multicap India Manufacturing. The dissemination of new indices in the capital market segment will take place in four days.

As per the circular, NSE said, "The Exchange proposes online dissemination of following Indices on trading system w.e.f. April 08, 2024."

The circular said, the values of Indices shall be provided in the Index Broadcast window (top right corner) and Multiple Index Broadcast screen in NEAT+ with the following broadcast name:

1. Index Name: Nifty Tata Group 25% Cap. Broadcast Names: Nifty Tata 25 Cap.

Nifty Tata Group's 25% Cap Index consists of 10 companies and is based on the free float market capitalisation method. The indices have a base date of April 01, 2005, and a base value of 1000. Of the total size of the index, 27.03% will be from IT stocks of Tata Group, 18.95% from automobile and auto components, 16.94% from consumer durables, 12.75% from consumer services, 11.83% from metals and mining, 6.35% of FMCG, and 6.15%.

It needs to be noted that there is already a Nifty Tata Group which consists of entire stocks under the conglomerate.

2. Index Name: Nifty500 Multicap India Manufacturing 50:30:20. Broadcast Names: Nifty Multi Mfg.

The Nifty500 Multicap India Manufacturing 50:30:20 Index aims to track the performance of select large-cap, mid-cap and small-cap stocks from the Nifty 500 index that represent the manufacturing theme. The weight of the stocks is based on each stock's free-float market capitalization with overall weight to the large-cap segment fixed at 50%, mid-cap segment fixed at 30% and small-cap segment fixed at 20%.

Here, 15 companies from the large-cap universe (stocks forming part of the Nifty 100), 25 companies from the mid-cap universe (stocks forming part of the Nifty Midcap 150) and 35 companies from small cap universe (stocks forming part of the Nifty Smallcap 250) based on free-float market capitalization from the eligible universe with preference to stocks that are available for trading on NSE's F&O segment.

The overall weight of the large-cap segment is fixed at 50%, the mid-cap segment is fixed at 30% and the small-cap segment is fixed at 20%.

3. Index Name: Nifty500 Multicap Infrastructure 50:30:20. Broadcast Names: Nifty Multi Infra

The Nifty500 Multicap Infrastructure 50:30:20 Index aims to track the performance of select large-cap, mid-cap and small-cap stocks from the Nifty 500 index that represent the infrastructure theme. The weight of the stocks is based on each stock's free-float market capitalization with overall weight to the large-cap segment fixed at 50%, mid-cap segment fixed at 30% and small-cap segment fixed at 20%.

The weight of each stock in the index is based on the free float market capitalization subject to a stock cap of 10%.

4. Index Name: Nifty MidSmall Healthcare. Broadcast Name: Nifty MidSml Hlth

The Nifty MidSmall Healthcare index tracks the performance of midcap and small-cap stocks belonging to the healthcare sector. The index includes up to 30 stocks. Stock weights are based on free-float market capitalization.

30 stocks are selected based on their free-float market capitalisation within the sector universe subject to availability

The weight of no single stock shall be more than 33% and weights of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing

Further, NSE said, "Members using Non-Neat Front end (NNF) can configure/develop their system to receive the index broadcast"

Also, the Exchange shall provide the details of above mentioned Indices in the market indices report (.in & .id
files) broadcast to the local database of terminals, end-of-day press files and market activity reports available
on the Exchange website and extranet.