NSE’s index services subsidiary, NSE Indices launched a new standard index – Nifty India Select 5 Corporate Groups (MAATR).
The Nifty India Select 5 Corporate Groups (MAATR) aims to track the performance of companies from the Nifty 500 which belong to the following corporate groups: Mahindra, Aditya Birla, Adani, Tata and Reliance. The weight of each stock in the index is based on free-float market capitalization. The weight of each corporate group is capped at 23% and the weight of each stock is capped at 15%.
The base date for the index is April 01, 2005 and the base value is 1000. The index is reconstituted and rebalanced on a quarterly basis. Over the past five years, the index has delivered a total return of 29.23% CAGR. In the last year alone, it has risen by 40.69%.
Currently, the index holds 42 constituents. Reliance Industries holds the largest weight in the index at 14.81%, followed by Mahindra & Mahindra (12.61%), TCS (6.92%), UltraTech Cement (6.55%), and Tech Mahindra (5.30%).
The index is expected to act as a benchmark for asset managers and a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.