NSE firm IISL unveils corporate group indices

Nifty Tata Group Index, Nifty Aditya Birla Group Index and Nifty Mahindra Group Index - are designed to reflect the performance of respective companies

India Index Services & Products (IISL), an NSE subsidiary, on Wednesday unveiled indices based on three top Indian corporate groups — the Tatas, the Mahindras and the Aditya Birla Group.

The indices — Nifty Tata Group Index, Nifty Aditya Birla Group Index and Nifty Mahindra Group Index — are designed to reflect the performance of companies belonging to the respective groups. These are based on full market capitalisation method and will include companies of the respective groups listed on the NSE.

The base date of these indices is April 1, 2005 and the base value is 1,000. These indices will be maintained by IISL and calculated on an end-of-day basis. “These indices will help measure the performance of corporate groups. In future, IISL may come up with indices on other corporate groups, which have five or more companies. Third-party products can be built on such indices,” said Mukesh Agarwal, chief executive, IISL.

The Nifty Tata Group index consists of 25 companies across 12 sectors. The market capitalisation of this index is Rs 7.51 lakh crore, or 7.8 per cent of the total market capitalisation of companies listed on the NSE. Another index ‘Nifty Tata Group 25% Cap’ will consist of the top 10 stocks of the group based on free float market capitalisation.

Nifty Aditya Birla Group index consists of eight companies across seven sectors. The market capitalisation of this index is Rs 2.08 lakh crore, or 2.2 per cent of the total market capitalisation of companies listed on NSE.

Nifty Mahindra Group Index consists of seven companies across six sectors. The market capitalisation of this index is Rs 1.64 lakh crore, or 1.7 per cent of the total market capitalisation of companies listed on the NSE.