NSE's index provider launches quality-based index

NSE Quality 30 index will reflect performance of top 30 quality cos identified on the basis of a quality score

NSE's index provider, India Index Services & Products Ltd (IISL) on Thursday announced the launch of NSE Quality 30 index, a quality parameter based index. The index will be available for the launch of exchange-traded funds and other structured products, said a release from NSE said.

The NSE Quality 30 index will reflect the performance of the top 30 quality companies, identified on the basis of a quality score, said the release. This quality score would choose companies based on their high return on equity (RoE), low debt-to-equity ratio and year-on-year growth in profit after tax over the last three years.

These 30 companies will be chosen from a pool of the 100 large and liquid companies listed on the NSE.

"There has been an increase in demand for the strategy indices in the Indian market which is in line with the practices in global investment community. Apart from complimenting other strategy based IISL indices, NSE Quality 30 Index will serve as an ideal benchmark for investors looking to invest in companies with durable business model resulting in sustained profits and high return on equity," said the statement from NSE.