Nifty FMCG

FMCG Index NSE

The National Stock Exchange (NSE)'s Nifty FMCG sectors index tracks the growth of the fast-moving consumer goods (FMCG) industry in India. It consists of fifteen tradeable, mass-consumed, non-durable enterprises listed on the NSE.

The Nifty FMCG index includes industries such as Animal Feed, Batteries, Breweries & Distilleries, Cigarettes & Tobacco Products, Dairy Products, Diversified FMCG, Edible Oil, Household Products, Other Agricultural Products. Also Beverages, Other Food Products, Packaged Foods, Personal Care, Photographic Products, stationery, Sugar, and Tea & Coffee. Launched on September 22, 1999, the index has breached levels of 40,000 at approximately 38 P/E multiples. NSE Indices Limited, previously known as India Index Services & Products Limited, owns and manages the index, which is governed by a three-tier structure.

How is Nifty FMCG Calculated?

The Nifty FMCG index value is calculated as follows –

Index value = Current market capitalization/ (Base market capitalization * Base Index Value)

The Nifty FMCG index is calculated semi-annually using data from six months, with January 31 and July 31 of each year serving as the cut-off dates. After providing the market with four weeks' notice, stocks in the Nifty FMCG index (if any) are replaced on the final trading day of March and September.

How are Stocks Selected for NIFTY FMCG?

The 15 stocks that make up the NIFTY FMCG share price are weighted based on a real-time base market capitalization value and a regularly limited free-float market capitalization.

NIFTY FMCG stock selection:

• Weights 15 stocks based on periodically capped free-float market capitalization relative to base market capitalization value.
• Eligibility criteria include listing on the National Stock Exchange, being part of the NIFTY 500, and being part of the FMCG sector.
• If eligible stocks are below 20, deficit stocks are selected from top 800 ranked stocks.
• Ideally traded on NSE’s F&O segment.
• Recently listed companies can be included if they meet eligibility criteria for three months.
• FMCG stocks in NSE must adhere to a cap of 33% for a single stock and 62% for top 3 stocks cumulatively at rebalancing.