NSE Indices launches Nifty 1000, Nifty1000 Equal Weight indices; what do they track?

The National Stock Exchange of India's index services subsidiary, NSE Indices, on Thursday, November 12, launched two new indices, namely Nifty 1000 and Nifty1000 Equal Weight.

Covering 1,000 stocks, the new indices extend coverage beyond the Nifty Total Market index to include a wider spectrum of the investable Indian equity universe.

What is the NIFTY 1000 index?

According to a NSE press release, the NIFTY 100 index tracks the performance of 1,000 stocks selected on the basis of full market capitalisation within the eligible universe. The constituent weightage will be determined by free-float market capitalisation.

"The selection framework incorporates liquidity and investability criteria, including trading frequency and impact cost, to balance broader market representation with practical considerations for portfolio replication," the NSE said.

The index will be reviewed semi-annually in March and September.

What is Nifty1000 Equal Weight?

Nifty1000 Equal Weight consists of the same constituents as the Nifty 1000 index, with each scrip assigned an equal weight at every quarterly rebalancing in March, June, September and December.

The two indices have a base value of 1,000 and a base date of September 24, 2007.

The indices will act as a benchmark for asset managers and will be a reference index followed by passive funds in the form of index funds, Exchange Traded Funds (ETFs), and structured products.

In September, NSE Indices launched the Nifty High Dividend Yield 15 to track the performance of the top 15 firms within the NIFTY Total Market on the basis of their dividend yield scores.