The index aims to track the performance of stocks from the Nifty 500 that form a part of the chemicals sector.
National Stock Exchange (NSE) on Tuesday said its index services subsidiary NSE Indices launched a new sectoral index Nifty Chemicals.
The index aims to track the performance of stocks from the Nifty 500 that form a part of the chemicals sector.
The new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products, according to a statement.
The top 20 stocks based on six-month average free float market capitalisation are selected with a preference to stocks available for trading in the derivatives segment at NSE.
The weight of each stock in the index is based on free float market capitalisation.
The weight of each stock in the index is capped at 33 per cent and the weight of top 3 stocks is capped at 62 per cent.
The index will be reconstituted semi-annually and rebalanced on a quarterly basis.
Equity benchmark indices Sensex and Nifty climbed in early trade on Wednesday but soon turned flat due to highly volatile global trends amid uncertainties over trade tariff.
The 30-share BSE Sensex jumped 289.83 points or 0.39 per cent to 74,392.15 in the morning trade. On the similar lines, the Nifty went up 79.5 points or 0.35 per cent to 22,577.40.
However, both the benchmark indices faced heavy volatility and were quoting between highs and lows.
From the Sensex pack, Infosys, HCL Technologies, Tata Consultancy Services, Axis Bank, Tech Mahindra, Nestle India, Asian Paints, Zomato, Bajaj Finance and Hindustan Unilever were among the laggards.
On the other hand, IndusInd Bank, Tata Motors, Kotak Mahindra Bank, Adani Ports, HDFC Bank, Mahindra & Mahindra, NTPC and Sun Pharma were among the gainers.
With PTI inputs
