NSE Indices launches Nifty 1000 and Nifty1000 Equal Weight indices
The Nifty 1000 index tracks 1,000 stocks selected based on their six-month average full market capitalisation. Individual stock weights are determined by free-float market capitalisation. The selection framework also considers liquidity and investability criteria, including trading frequency and impact cost.
The Nifty1000 Equal Weight index comprises the same constituents as the Nifty 1000 but assigns an equal weight to each stock, offering an alternative to the market capitalisation-based weighting approach.
Both indices have a base date of 24 September 2007 and a base value of 1,000. They are calculated at the end of each trading day.
NSE Indices said the indices would serve as benchmarks for asset managers and could be used by passive investment products, including exchange-traded funds, index funds and structured products.
The Nifty 1000 index recorded total returns of -7.28% year to date, 8.82% over five years and 10.52% since inception (24 September 2007). The Nifty1000 Equal Weight index delivered total returns of -2.22% year to date, 13.63% over five years and 12.46% since inception (24 September 2007).
The Nifty 1000 index has a higher allocation to financial services, at 29.44%, followed by capital goods at 7.88% and healthcare at 7.68%. In the equal-weight variant, capital goods account for the largest sector allocation at 17.58%, followed by financial services at 13.20% and healthcare at 9.15%.
The Nifty 1000 has a price-to-earnings ratio of 21.10 and a dividend yield of 1.24%, while the equal-weight index has a P/E ratio of 23.13 and a dividend yield of 0.85%, according to the index data provided.
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