NSE launches Nifty Chemicals Index

NSE Indices, a subsidiary of the National Stock Exchange (NSE), has introduced a new sectoral index called the Nifty Chemicals Index. This index is designed to track the performance of companies in the chemicals sector.

The index will focus on the top 20 stocks from the Nifty 500 that belong to the chemicals industry. These stocks are selected based on their six-month average free-float market capitalization, with a preference for those available for trading in the NSE's derivatives segment.

The weightage of each stock within the index is determined by its free-float market capitalization. The top three stocks have a single stock cap of 33% and a combined cap of 62%. The index's base date is April 1, 2005, and its base value is 1000. It will undergo semi-annual reconstitution and quarterly rebalancing.​