NSE announces Nifty India Digital Index to track portfolio stocks performance representing digital theme

With an aim to track the performance of portfolio stocks that broadly represent the digital theme, NSE today announced a launch of new index — Nifty India Digital Index. The announcement was made via an official press note on Tuesday. 

This digital theme is now the essence of most industries including software, e-commerce, IT-enabled services, industrial electronics and telecom services companies. 

“Digitalization is happening rapidly and is touching every aspect of our lives. The Nifty India Digital index aims to capture the performance of companies exposed to the Digital theme, which will likely continue to increase in importance in the future.” said Mukesh Agarwal, CEO – NSE Indices Ltd. 

The largest 30 stocks from eligible basic industries are chosen based on their 6-month average free-float market capitalisation as on the cut-off dates at the end of January and July, NSE further mentioned.  

The weight of the stocks in the index is based on their free-float market capitalization. Sector weights are capped at 50 per cent each and stock weights are capped at 7.50 per cent each, the bourse said while explaining the weightage of the index and stocks in it. 

The 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, the statement said.