NSE Indices Launches 11 New Nifty Sectoral Indices To Tap Passive Investing Boom

NSE Indices, the index services arm of the National Stock Exchange (NSE), has launched 11 new sectoral indices, expanding its benchmark offerings as demand for passive investment products continues to grow in India. The newly launched indices are:

• Nifty Power

• Nifty Capital Goods

• Nifty Telecommunications

• Nifty Construction

• Nifty Consumer Services

• Nifty Commercial & Transport Services

• Nifty Retail

• Nifty Hospitals

• Nifty NBFC

• Nifty Housing Finance

• Nifty Insurance

With the latest addition, the total number of sectoral indices under the Nifty brand has increased to 34.

Wider Sector Coverage

NSE Indices said the expanded basket aims to provide broader and more detailed coverage of the Indian economy by tracking both established and emerging sectors.

The move significantly widens the range of benchmarks available for sectors such as power, telecommunications, retail, healthcare, housing finance and insurance. Many fund managers and institutional investors use sector indices to measure how specific parts of the economy are performing and to compare returns across industries.

Focus On Passive Investment Products

NSE Indices said the newly launched benchmarks can be used as underlying indices for products such as exchange-traded funds (ETFs), index funds and structured investment offerings.

The rollout comes as passive investing continues to attract more money in India. In recent years, ETFs and index funds have seen steady inflows.

The additional indices may also give asset management companies a wider set of options when designing sector-linked and theme-based schemes. Areas such as power, insurance, housing finance, retail and healthcare now have dedicated benchmarks that can be tracked independently.

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Expanding Nifty Ecosystem

NSE Indices manages a broad range of benchmark, thematic, strategy and sectoral indices under the Nifty brand. The Nifty 50 remains the most tracked equity benchmark in the Indian stock market and serves as the underlying index for several investment products.

Apart from equity benchmarks, NSE Indices also maintains fixed-income indices that track government securities, corporate bonds and money market instruments.

The new indices give investors and fund managers additional benchmarks to track individual sectors. They also open the door for more investment products tied to areas such as power, telecom, retail, healthcare, insurance and financial services.

Sources:

The Economic Times

Business Standard