NSE group firm IISL launches Nifty 50 equal weight index

NSE group firm India Index Services & Products Ltd (IISL) today launched Nifty 50 equal weight index -- an alternative weighting strategy to its market capitalisation based parent index Nifty 50 index.
The index includes the same companies as its parent index, but weighted equally.
"Nifty 50 equal weight index is a smart yet simple index strategy - which allocates equal weight to all companies in the index, instead of considering their economies or market capitalisation as the sole criteria for weight allocation. This gives fund managers an alternative index strategy to explore," IISL CEO Mukesh Agarwal said in a statement.

The index will be calculated on an end-of-day basis. It is expected to act as a benchmark for asset managers looking for an alternative weighting strategy to its market capitalisation weighted parent index Nifty 50 for launching products.
The base date for the index is November 3, 1995 and base value is 1,000. The index composition will be reconstituted semi-annually along with Nifty 50.
The weights may, however, drift between rebalancing due to movement in stock price.