NCDEX Launches NDEX and FINNDEX Indices to Enter Equity and Derivatives Markets
· Business · Economic Times, Moneycontrol
The National Commodities and Derivatives Exchange Limited (NCDEX) has launched two new rule-based indices, NDEX and FINNDEX, expanding beyond commodity derivatives into equity and financial market infrastructure. NDEX tracks 20 large and liquid Indian equities selected from the top 60 NSE-listed companies using a multi-factor methodology weighing free-float market capitalisation, liquidity, beta and volatility, with individual stock weights capped at 15%. FINNDEX comprises 15 financial sector stocks, excluding insurance companies, drawn from the top 40 eligible companies using the same scoring framework. Both benchmarks have a base month of January 2010 and a base value of 10,000, and are calculated and maintained by NSE Indices Ltd with semi-annual rebalancing in March and September. The launch is part of NCDEX's broader expansion into a wider range of market infrastructure services alongside its core commodity derivatives business.
Why it matters
The launch marks NCDEX's strategic entry into the equity derivatives segment, diversifying its product offerings beyond commodities and potentially broadening market participation for investors seeking regulated index exposure to Indian large-caps and financial stocks.
Read the original report — Economic Times
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