The Nifty500 Multicap Infrastructure 50:30:20 Index aims to track the performance of selected large, mid and small-cap infrastructure-related stocks from the Nifty500 index. It has a base date of April 1, 2005, with a base value of 1000.
Eligibility Criteria for Stocks
A stock must fulfil the following criteria to be included in the Nifty Multicap Infrastructure 50:30:20.
The stock must be a part of the Nifty 500 index when reviewed.
Only ordinary shares are included in the index.
The stocks should be associated with the infrastructure-building industry.
Stock Selection Process for Nifty500 Multicap Infrastructure 50:30:20
The following steps are involved in selecting the stocks in Nifty500 Multicap 50:30:20
Step 1: Stocks in each segment are arranged in descending order of their 6-month free-float market capitalisation. Stocks available for trading on the NSE’s Futures & Options segment get higher.
Step 2: The following stocks are selected from the eligible segment:
Top 15 large-cap companies
Top 25 mid-cap companies
Top 35 small-cap companies
The weight of each stock depends on its free-float market capitalisation. However, a stock can have a maximum of 10% weightage. The segment weight is fixed in the following manner:
Large-cap stocks - 50%
Mid-cap stocks - 30%
Small-cap stocks - 20%
Reconstitution of Nifty500 Multicap Infrastructure 50:30:20
The index is reconstituted or rebalanced every quarter on the last trading day of March, June, September and December.
Stocks exiting the Nifty 500 are removed from the index.
Non-F&O stocks are included if their free-float market capitalisation is at least 1.5 times of the smallest stocks.
If the number of eligible stocks in each segment is less than the specified quantity, the index is traded with the available stocks.
The index is screened every quarter to check whether it follows the portfolio concentration rules of ETFs or index funds announced by SEBI on January 10, 2019.
An index is a group of a specific type of securities. They can be stocks, derivatives, or other financial instruments. The index represents as well as tracks the performance of the asset class or the market segment.
Indices are used to track the performance of a group of securities. Indices show the overall performance of an asset class or market sector.
There are over 350 indices listed on the National Stock Exchange (NSE).
There are over 50 indices listed on BSE.
The Nifty 50 is the largest Indian index. It is one of the most actively traded indices in the world.
Sensex and Nifty 50 are the two oldest indices in India.
The Sensex and the Nifty 50 are the two major indices in India.
