NSE Indices launches Nifty Next 100 to track emerging large-cap opportunities

NSE Indices, a subsidiary of the National Stock Exchange (NSE), launched the Nifty Next 100 Index, a new broad-based benchmark designed to track the performance of emerging large-cap companies.

The new index comprises a portfolio of 100 stocks, including all 50 constituents of the Nifty Next 50 and the top 50 stocks from the Nifty Midcap 150, selected based on their six-month average free-float market capitalisation. The index follows a free-float market capitalisation-weighted methodology.

The Nifty Next 100 has a base date of 1 October 2010 and a base value of 1,000. The index will be reconstituted on a semi-annual basis in March and September.

NSE Indices said the benchmark is expected to serve as a reference index for passive investment products such as exchange-traded funds (ETFs), index funds and structured products, while also providing asset managers with a broader benchmark for tracking India's next generation of large-cap companies.

According to the index factsheet, the Nifty Next 100 has delivered a 13.42% annualised total return since inception (1 October 2010), while its one-year and five-year annualised total returns stand at 11.03% and 15.77%, respectively.

Financial services is the largest sector in the index with a weight of 22.23%, followed by capital goods (13.95%), healthcare (9.34%), power (8.27%), fast-moving consumer goods (7.75%) and automobile & auto components (7.74%). Other key sectors include consumer services, oil & gas, chemicals and metals.

The top constituents by weight include Divi's Laboratories (2.47%), TVS Motor Company (2.45%), Tata Motors (2.20%), Federal Bank (2.14%) and Hindustan Aeronautics (2.13%).