NCDEX launches NDEX and FINNDEX indices to foray into equity and derivatives
Benchmarks Nifty22,665.65-145.7FEATURED FUNDS★★★★★UTI Aggressive Hybrid Fund Regular Plan-Growth5Y Return8.76 % Invest NowFEATURED FUNDS★★★★★Motilal Oswal Midcap Fund Direct-Growth5Y Return18.76 % Invest NowEnter search…
NCDEX has launched NDEX and FINNDEX, two rule-based indices covering large and liquid Indian equities and financial sector stocks. The benchmarks use a multi-factor methodology incorporating market capitalisation, liquidity, beta and volatility, with semi-annual rebalancing.
NCDEX (formerly National Commodities and Derivatives Exchange Limited) has launched two rule-based indices, NDEX and FINNDEX, marking its entry into the equity and equity derivatives markets. The launch is part of the exchange’s expansion into a broader range of market infrastructure services.Both indices use a multi-factor methodology to select stocks and determine their weights. The framework assigns scores based on four parameters: free-float market capitalisation (30%), average daily traded value (30%), beta (20%) and volatility (20%). The methodology combines measures of company size, trading activity and sensitivity to market movements.
The final weight of each constituent is calculated by assigning equal importance to its free-float market-capitalisation weight and composite-score weight. Individual stock weights in both indices are capped at 15% at each rebalancing.
NDEX comprises 20 large and liquid Indian equities selected from the top 60 NSE-listed companies. It is designed to track the performance of leading listed companies. FINNDEX comprises 15 financial sector stocks, excluding insurance companies, selected from the top 40 eligible companies.
The constituent selection process for both indices uses the composite scoring framework to assess free-float market capitalisation, liquidity, beta and volatility. The NCDEX indices are calculated and maintained by NSE Indices Ltd.
Live Events
NDEX and FINNDEX will be reviewed and rebalanced twice a year, in March and September. Provisions have also been made for ad-hoc reconstitution in specified circumstances. Both indices have January 2010 as base month and a base value of 10,000.
Index values will be calculated and disseminated in real time during market hours through NCDEX’s data feeds, website and periodic factsheets. NDEX tracks the performance of large and liquid Indian equities, while FINNDEX measures the performance of the financial sector.
Commenting on the launch, Vikas Goel, MD and CEO of NCDEX, said the introduction of NDEX and FINNDEX marked a milestone in the exchange’s transition into a multi-segment exchange.
He said the expansion into equity and equity derivatives was part of NCDEX’s plan to build a broader market institution in response to the changing needs of India’s financial ecosystem.
Goel added that as Indian capital markets deepen and attract greater domestic and international participation, transparent and well-designed benchmarks become increasingly important. He said the indices aim to support informed investment decisions, expand the tools available to market participants and reinforce India’s position as a destination for global capital.
Tojo Banerjee, Chief of Equity Business at NCDEX, said NDEX and FINNDEX use an approach to index construction that goes beyond market capitalisation, taking into account factors that influence stock selection and market behaviour.
He said FINNDEX reflects the diversity of India’s financial ecosystem, including capital markets, non-banking financial companies (NBFCs) and fintech, alongside traditional banking. NDEX, meanwhile, serves as a benchmark for large and liquid Indian equities.
Banerjee said the indices could serve as reference points for investors, market participants and researchers assessing India’s evolving growth story.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
Add as a Reliable and Trusted News Source Add Now!
(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onNCDEX indicesNDEXFINNDEXNCDEX equity marketNSE IndicesIndian equity benchmarksfinancial sector stocks
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...moreless(You can now subscribe to our ETMarkets WhatsApp channel)
Read More News onNCDEX indicesNDEXFINNDEXNCDEX equity marketNSE IndicesIndian equity benchmarksfinancial sector stocks
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
...morelessPrime ExclusivesInvestment IdeasStock Report PlusePaperWealth EditionThe global business of promising more
One company, 2 words. Bond yield and CDS: Will they decide the fate of global markets?
Business of Odd Things: Inside an industry that farms fish that nobody is meant to eat
War's second-order effects are becoming visible in critical sectors
US mid-term elections – Part 2: What does it mean for Trump to lose control of Congress?
Homebuyers wait as NCLT panel picks holes in unfinished Jaypee projects
- 1
- 2
- 3
& personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &
in-depth stock reportsSubscribe NowET
Unlock Access to All Exclusives with ETPrime FREE TRIAL
15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers
Trial offer expiring in00 : 05 : 00
I'd rather pay ₹2599 nowUh-oh! This is an exclusive story available for selected readers only.
Worry not. You’re just a step away.
Prime Account Detected!
It seems like you're already an ETPrime member with
Login using your ET Prime credentials to enjoy all member benefits
Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.
Unlock ETPrime's Exclusive Stories Today!
Big Price Drop! Flat 40% Off
Student Only OfferAlready a Member? Sign In nowAlready a Member? Sign In nowAlready a Member? Sign In nowOffer Exclusively For You
Save up to Rs. 700/-
ON ET PRIME MEMBERSHIP
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get 1 Year Free
With 1 and 2-Year ET prime membership
Avail OfferOffer Exclusively For You
Get Flat 40% Off
Then ₹ 1749 for 1 year
Avail OfferOffer Exclusively For You
ET Prime at ₹ 49 for 1 month
Then ₹ 1749 for 1 year
Avail OfferSpecial Offer
Get flat 40% off on ETPrime
Avail OfferAvail OfferClaim NowAlready a Member? Sign In nowNeed Assistance?
Connect with an ETPrime expert for personalized support and guidance
+91 9484700004'; }); } if(listing) { var h3 = "You tried reading " + listArr.length + " locked stories in the past " + threshold + " days.", h4 = "Become an ET Prime member and don't miss out on these exclusive stories."; var html = '' + h3 + '
' + h4 + '
- ' + listing + '
What’s Included with
ETPrime Membership
1Exclusive Insights That Matter
Uncover the truth with our investigative stories
Make strategic moves using the real-world case studies
Read industry-specific stories to identify emerging trends
Spot opportunities with in-depth insights that matter
Trump temper on H-1B visas is forcing Indians to do these things to stay put in US
What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.
Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?
The problem with lab grown diamonds
Why a falling rupee is a better option for the economy
A list of top 20 momentum stocks that have delivered massive returns in one year
2Invest Wisely With Smart Market Tools & Investment Ideas
Alpha Trade
Get daily trade ideas from SEBI-registered research analysts.
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
All-in-one stock research with Stock Score, peer comparison & key signals.
BigBull Portfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company's fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
3Stay informed anytime, anywhere with ET ePaper
ePaper - Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper - Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
5Enjoy Complimentary Subscriptions From Top Brands
Stream new documentaries from all across the world every day.
Stories you might be interested in
Figures reflect the source report and its stated period. This article is for information and is not investment advice.
