NSE to disseminate NV20 index value live from Monday

National Stock Exchange (NSE) today said it will start disseminating the value of NV20 index, comprising 20 most liquid blue-chip companies, live on its terminal from next week.

"NSE will start disseminating the value of NV20 live on its terminal from Monday, June 22, 2015," the exchange said in a statement.

The move is a precursor to a new exchange traded fund (ETF) listing on NV20 index.

The live real time value would be available in NSE's Futures & Options segment on its trading terminal. At present, the index value is computed only once at the end of the day.

The NV20 index consists of 20 most liquid value blue-chip companies listed on NSE. The index, which has been computed from January 2009, provides exposure to eight broader sectors of the economy.

Apart from forming an ETF, the index can be used for a variety of other purposes such as benchmarking fund portfolios, issuance of index funds and structured products.

Infosys, ICICI Bank and Reliance Industries are the top three weighted companies in the index.

The NV20 Index has given around 15 per cent return in last five years, while the same has been at about 20 per cent return in last three years.

"Stocks are selected on the basis of value parameters like return on capital employed, price to earning ratio, price to book value ratio and dividend yield. Since base of the index is CNX Nifty, which is the benchmark index, only large and liquid value companies form part of NV20 Index", Mukesh Agarwal Chief Executive at India Index Services & Products Ltd (IISL), a subsidiary of NSE, said in a statement.