NSE Indices launched a new thematic index, the Nifty India New Age Consumption Index. This index is designed to track the performance of stocks from the Nifty 500 that cater to the evolving preferences of the new generation of consumers.
The index focuses on sectors such as passenger cars and utility vehicles, two- and three-wheelers, gems, jewelry, and watches, hotels and resorts, and fintech. It comprises a maximum of 75 stocks, with weights based on free-float market capitalization. Sector weights are capped at 25% each and stock weights are capped at 5% each.
The base date for the index is April 01, 2005, and the base value is 1000. Over the past five years, the index has delivered a total return of 25.86% CAGR. In the last year alone, it has risen by 67.84%. The index will be reconstituted semi-annually and rebalanced on a quarterly basis.
Currently, Titan Company holds the largest weight in the index at 5.09%, followed by Bharti Airtel (5%), Zomato (4.99%), Tata Motors (4.98%), and Maruti Suzuki India (4.98%).
The launch of this index is expected to provide investors with a new benchmark to track the performance of new-age consumption stocks. It is also likely to pave the way for the development of passive investment products, such as ETFs and index funds, tracking this index.