NSE Indices launches Nifty India Defence Equal Weight Index
The index comprises 19 stocks, all of which are constituents of the parent Nifty India Defence Index, and assigns an equal weight to each constituent. The parent index includes companies from the Nifty Total Market Index that either belong to eligible defence-related industries or derive at least 10% of their revenue from the defence sector.
The new index follows an equal-weighted methodology, with a base date of 2 April 2018 and a base value of 1,000. It will be reconstituted on a semi-annual basis, while constituent weights will be rebalanced quarterly in March, June, September and December.
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 dedicated benchmark for India's defence sector.
According to the index factsheet, capital goods account for 88.98% of the index weight, followed by chemicals (5.56%) and automobile & auto components (5.46%). The top constituents include Astra Microwave Products (5.80%), Hindustan Aeronautics (5.76%), Paras Defence and Space Technologies (5.72%), Dynamatic Technologies (5.60%) and Solar Industries India (5.56%).
The index has delivered an annualised total return of 31.05% since inception (2 April 2018), while its one-year and five-year annualised total returns stand at 32.71% and 55.09%, respectively.
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