NSE Indices launches Nifty Total Market Momentum Quality 50 Index

NSE's index services subsidiary NSE Indices has launched a new strategy index - Nifty Total Market Momentum Quality 50 index that aims to track the performance of a 50-stock portfolio selected based on a combination of momentum and quality factors from the Nifty Total Market.

The momentum score for each company is determined based on its 6-month and 12-month price return, adjusted for volatility. The quality score for each company is determined based on return on equity (ROE), financial leverage (debt/equity ratio) and earnings (EPS) growth variability analyzed during the previous 5 years.

The weight of each stock in the index is based on a combination of its composite factor score and free float market capitalization and is capped at the lower of 5% or 5 times its weight in the index based on free float market capitalization.

 

The index has a base date of 01 April 2005, and a base value of 1000. It will be reconstituted and rebalanced semi-annually.

As of 31 July 2025, the index delivered a 1-year total return of (-12.11)%. It has, however, recorded a strong 21.70% CAGR since inception.

Top constituents include: Coromandel International (5.63%), Maruti Suzuki India (5.21%), Divi's Laboratories (5.18%), Eicher Motors (5.05%) and Hindustan Aeronautics (4.84%).

The new index is expected to act as a benchmark for asset managers and be a reference index tracked by passive funds in the form of Exchange Traded Funds (ETFs), index funds and structured products.

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